Engen Capital expects to grow 25% in 2022 and 10% this year

Engen Capital, a financial firm specialized in the pure leasing, financial leasing and business credit industry, estimates to close this year with growth of around 10% and 25% in 2022, as more companies are reactivating their investments and resorting to financing.

“We are expecting a growth in the granting of loans of at least 25% for next year, compared to 2021 and for this year we expect to grow around 10% compared to 2020”, explained in an interview Gerardo Vargas, financial director of the company.

The leasing company focused on small and medium-sized companies yesterday celebrated the issuance of debt in the Institutional Stock Exchange (Biva) for 2,500 million pesos, resources that, explained the manager, will be to release bank credit lines and to increase the number of financing granted.

He explained that with this issuance they are extending the maturity term of their liabilities by just under two years and are making their financing cheaper, obtaining savings of 40 basis points in the cost of funding.

“The demand for financing is better, more dynamic than the one we observe in 2020, however, it has not recovered pre-pandemic levels, I think it partly depends on the fact that not all sectors have finished emerging from the pandemic and partly because the shortage of chips is affecting the automotive industry, but it is considerably better than what we observed last year, ”said Gerardo Vargas.

He said that the sectors that remain “depressed” by the contingency are those related to business tourism and the automotive industry. Likewise, the garment manufacturing business has not finished recovering. The segments that are doing better are those linked to exports, such as agribusiness and health.

“We are confident, although there are sectors where we are being more cautious, but we trust the fundamentals of the Mexican economy, we believe that it is a very resilient economy, with many opportunities, with a large workforce, although there are light and dark areas,” added the in charge of the finances of Engen Capital.

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