Consubanco, IFC pact to support Mexico silver economy

Consubanco, supported by the International Finance Corporation (IFC), has launched a 2.2 billion pesos ($129 million) bond issuance aimed at enhancing Mexico’s silver economy.

IFC, a World Bank Group member, invested 50 per cent of the bonds and facilitated the remaining 50 per cent from other investors. This historic issuance marks the first listing in the Mexican stock market (BMV) without a debt offering.

The bonds are secured by the credit portfolio of pensioners from the Mexican Social Security Institute (IMSS), who are clients of Consubanco. CEO Alfredo Flores stated the funds will enable the expansion of services to over four million pensioners, retirees, and women, promising improved conditions and rates.

IFC’s Country Manager for Mexico, Juan Gonzalo Flores, highlighted the increasing financial risks for older adults due to insufficient savings and rising expenses. He emphasised that this initiative supports the development of the silver economy, which addresses the needs of the aging population.

The silver economy, focusing on services for older individuals, is increasingly crucial as the global elderly population grows. In Latin America and the Caribbean, it is expected that 200 million people, or one in four, will be over 60 by 2050. Financial services tailored to this demographic, especially women, are vital in addressing these emerging challenges.

Attribution: IFC