Unifin’s dollar bonds jumped after Mexico’s finance ministry said that it was forming an MXN 10bn ($500mn) credit program to increase lending to small and medium businesses. Barclays has now recommended buying Unifin’s bonds saying that it should help the non-bank lender lower funding costs and largely cover upcoming bond payments. They add that the program “should meaningfully enhance the company’s ability to tap local markets at low rates”. Unifin is expected to issue up to MXN 10bn ($bn) in local 3Y and 7Y bonds in wake of the new program, with government guaranteeing between 25-30% of principal. The first tranche is of MXN 4bn ($mn) and could come after release of audited results expected mid-next week, said Bloomberg. The financing is largely set to provide funds required to pay its 2022 and
2023 bond maturities.

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