IDB Invest and Grupo Acerero promote sustainability in Mexico’s steel sector

Grupo Acerero, a producer and marketer of steel products in Mexico, made its debut in the local capital markets by issuing two notes for a total of $1.2 billion Mexican pesos (equivalent to US$59 million) on the Bolsa Institucional de Valores (BIVA). Both issues were backed by partial guarantees granted by IDB Invest for up to 50% of the amount issued.

The transaction will enable Grupo Acerero to complete the construction and start-up of its new plant, which will enable it to produce its own scrap-based slabs and is expected to generate more than 600 direct jobs. In addition, it is expected to boost the growth of the company’s domestic supply chain, mainly through the purchase of scrap, which will improve the sustainability of slabs and plates.

In order to prepare Grupo Acerero to issue thematic bonds in the future, IDB Invest is supporting the company in developing a corporate-level sustainability strategy that will serve as the basis for the design of a bond framework aligned with the International Capital Markets Association (ICMA) Principles.

In addition, IDB Invest granted the company a reverse factoring line for up to MXN$222 million to increase access to financing for Grupo Acerero’s suppliers, particularly MSMEs in Mexico, under competitive conditions.