The Trusts Instituted in Relation to Agriculture (FIRA) of the Bank of Mexico will issue a three-year bond for 5,000 million pesos on the Mexican Stock Exchange (BMV).
This Monday, Alan Castellanos, general director of the institution, accompanied by directors of the BMV, will also celebrate 10 years since the first issue of a bond issued by FIRA in the national stock market.
The bond will have a daily Interbank Equilibrium Interest Rate (TIEE) with a coupon that will be paid every 28 days and matures in three years.
“The instrument will be classified as a social bond, since in addition to having the reference rate, it will have financial inclusion as a component and will be used to finance individuals who do not have access to resources,” said the manager in an interview.
The FIRA, a trust that depends operationally on the Bank of Mexico, no longer receives resources from the central bank, since all of its financing comes from the stock markets, explained Castellanos.
FIRA, which is dedicated to providing financing to the Mexican countryside, has liabilities of around 100,000 million pesos.
Of this figure, about 60,000 million pesos are from issues made in the BMV.
According to Alan Castellanos, FIRA has a similar rating to the Federal Government, since it has an implicit and not explicit guarantee from the government.
He commented that there is currently liquidity in the market for this type of bond and that many of the takers are investment funds that require liquidity and also some retirement fund managers (Afores) have come to take on this type of role.
He recalled that FIRA grants financing closely related to agricultural cycles. Its clients need financing for six, nine months, one year and the longest are five years.