Introduction to Asofom and its Importance
The Association of Multiple-Purpose Financial Societies (Asofom) has reported a strengthening of its institutional funding sources and increased access to resources from development banking, national, and international funds. Asofom plays a crucial role in representing and supporting the interests of Sociedades Financieras de Objeto Múltiple (Sofomes) in Mexico.
Key Partnerships and Increased Funding
According to Javier Garza, President of Asofom, collaboration with development banks is essential for expanding funding capabilities. Asofom has established a strategic relationship with FIRA, a trust managed by the Bank of Mexico that supports financing and development in the agropecuary and rural sectors, where Sofomes have become a significant sector.
In just one year, participation with Nacional Financiera has grown from 37 to 48 institutions receiving funding. This progress is attributed not only to increased public institution support for Sofomes but also to a process of professionalization and institutionalization within the sector, enabling compliance with technical, financial, and governance standards required to access these resources.
Expanding Funding Opportunities
Garza highlighted that funding opportunities have expanded beyond national boundaries due to the growing international interest in financing projects with environmental, social, and governance (ESG) criteria.
“In the world, money is abundant; the challenge lies in attracting it. Some Sofomes have up to 20 different international funds. What matters is having a solid story, operating with ESG standards, and demonstrating professionalism,” Garza emphasized.
Innovative Financial Project
Asofom is leading an innovative financial project in collaboration with FIRA, aiming to broaden funding sources available for Sofomes through collective guarantee schemes that facilitate access to more competitive conditions and stronger institutional support.
The program involves eight institutions contributing a liquid guarantee equivalent to 10% of the total funding, while FIRA contributes 30%. This structure allows for a “AAA” credit rating, increasing investor confidence and opening doors to more competitive financing conditions. The vehicle has already gathered between 800 and 1,000 million pesos in resources.
Simplified Emission Process
Jorge Avante, General Director of Asofom, explained that Sofomes progress through various funding stages as they develop institutionally:
- Initially, they rely on resources from family and friends.
- Subsequently, they access development bank financing, international funds, and capital markets.
- Post-reforms in 2024, they anticipate simplified emissions as outlined in the Securities Market Law and Fund Investment Act (LMV).
Avante mentioned that secondary rules necessary for implementing this new scheme have recently been released, accelerating its implementation within the sector.
Key Questions and Answers
- What is Asofom? The Association of Multiple-Purpose Financial Societies (Asofom) represents and supports the interests of Sociedades Financieras de Objeto Múltiple (Sofomes) in Mexico.
- Why is Asofom’s strengthening of funding sources important? It enables Sofomes to access more competitive financing conditions, expand their operations, and contribute to the development of agropecuary and rural sectors.
- What are simplified emissions? Simplified emissions refer to a new funding scheme for Sofomes, following reforms in the Securities Market Law and Fund Investment Act (LMV) in 2024.
