The Trusts Instituted in Relation to Agriculture (FIRA) have joined the Package against Inflation and Famine (Pacic), promoted by the federal government to control inflation in 24 products of the basic basket, by deploying instruments such as partial guarantees, first-loss warranties and technical assistance for the field.
“A very important sector of the Pacic refers to the agricultural part, increasing production or facilitating that producers can produce their product or raw material with the lowest possible costs. This is how FIRA has deployed all the instruments, such as partial guarantees, first loss guarantees, their financing and technical assistance to these sensitive value chains that require a boost so that by increasing production there is less pressure on prices” , explained the general director of the institution, Alan Elizondo.
In a conference on the occasion of the celebration for its tenth anniversary as a recurring issuer of debt on the Mexican Stock Exchange (BMV) and for the placement of its first bond referenced to the TIIE for overnight funding, the manager added that they will also support with financing to actions focused on increasing storage capacity for farm products, in order to guarantee price stability in the agri-food industry.
The public official highlighted that during the last decade FIRA has carried out 206 debt issues (both short-term and long-term) in the Mexican Stock Exchange, which added to other private placements, accumulate an amount of 345,000 million pesos, that have been channeled to finance the agri-food industry and the Mexican countryside.
Alan Elizondo mentioned that the trust dependent on the Bank of Mexico, which serves more than 2 million producers a year, has been active in debt issuances with an environmental, social and corporate governance (ASG) focus, with which it has financed technology efficient in the use of water.
It has also been a pioneer in the placement of corporate bonds with the new interest rate referenced to the TIIE for Overnight Funding, promoted by the Bank of Mexico, which has benefited the countryside.
The director said that a bond without reference to the TIIE Funding at one day has 50% more demand with respect to the amount sought, an ASG issue 100% more demand and a placement of TIIE Funding at one day the demand was four pesos for each peso that was sought, twice as much as the green bonds.
This May 18, FIRA will make a second issue of bonds referenced to the TIIE overnight funding rate, for 3,000 million pesos in two tranches, with terms of one and a half years and three years, with a gender focus.