• Investment in economic activities that reduce social gaps and protect the environment.
  • Finance for activities that have a positive environmental and social impact.

The European Investment Bank (EIB) today signed a memorandum of understanding in Mexico City with Nacional Financiera (Nafin) to develop long-term comprehensive cooperation to finance sustainable development in Mexico, while promoting investment in economic activities that reduce social gaps and protect the environment.

The memorandum of understanding will help to mobilise finance for activities that have a positive environmental and social impact. The EIB and Nafin have a long history of cooperation in the areas of climate and social action and recently joined efforts to mitigate the impact of the coronavirus pandemic on Mexican micro, small and medium-sized enterprises. In 2020, the EIB and Nafin signed a $150 million loan to address the working capital and investment needs of Mexican microenterprises affected by the COVID-19 breakout.

The memorandum of understanding signed by Kristin Lang, EIB Head of Division for Latin America and Caribbean – Public Sector, and Ismael Zúñiga Villanueva, Nafin Head of the Issuances and International Relations Unit, is part of the European Union’s Global Gateway initiative supporting projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.

The Global Gateway is the European Union’s contribution to narrowing the global investment gap worldwide. Between 2021 and 2027, the European Union expects to mobilise up to €300 billion of investments for sustainable and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities. This chimes with Mexico’s ambitious plans for sustainable finance for the less favoured social sectors and regions of the country, to take advantage of changes in global trade and models of production. The EIB is a partner that can channel that ambition into tangible projects by collaborating with the various entities in Mexico.

“I’m very glad to announce the reinforcement of the EIB’s longstanding relationship with Nafin to enable strategic investments in the country. Recently, the Bank joined forces with Nafin, providing them with a loan for the economic reactivation of micro, small and medium-sized enterprises affected by the coronavirus pandemic. Now the memorandum of understanding signed with Nafin will open up more opportunities to sign additional loans,” said EIB Head of Division for Latin America and Caribbean – Public Sector Kristin Lang.

Ismael Zúñiga Villanueva, Nafin Head of the Issuances and International Relations Unit said: “I am confident of the potential for collaboration between our institutions, especially at a critical time such as this in terms of the need to promote sustainable financing, and that is why this memorandum of understanding is so relevant. Today we are facing major global challenges in social and environmental matters that require the mobilisation of resources for sustainable development projects. We know that the European Union, and in particular the EIB, is a pioneer in this area, so receiving technical and financial cooperation resources and exchanging best practices and experiences will serve Mexico well.”

Background information

About the EIB:

The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms — competitive interest rates with loan durations aligned with projects. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.

About EIB Global in Mexico:

The EIB is the largest multilateral public bank in the world and financed around €10.8 billion in investments outside the European Union in 2022 via EIB Global, the arm of the EIB created in 2022 for activities outside the European Union. Since the EU bank started working in Mexico in 1997, it has provided over €884 million to finance investments with favourable conditions — in terms of both maturity and interest rates — with the aim of improving the quality of life of the Mexican people.

About EIB Global in Latin America:

EIB Global has provided economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €13 billion to support more than 150 projects in 15 countries in the region.

About the Global Gateway initiative:

EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of €100 billion, around one-third of the overall budget of the initiative, by the end of 2027, including in Mexico and Latin America.

About Nafin:

Nafin is a Mexican public development bank established in 1934, whose mission is to contribute to the economic development of Mexico. It facilitates access to finance and to other business development services for micro, small and medium-sized enterprises, entrepreneurs and priority investment projects, contributes to the development of financial markets, and acts as trustee and financial agent of the federal government to promote innovation, productivity, competitiveness, job creation and regional growth.