Background on CIBanco and its Role
CIBanco is a prominent financial institution in Mexico, playing a crucial role as the “common representative” for various bond emissions in the local market. This position allows CIBanco to act on behalf of bondholders, safeguarding their interests in debt emissions within the country.
CIBanco’s Statement on Regular Operations
On Tuesday, CIBanco informed investors that its operations as a “common representative” in the securities market will continue regularly, adhering to the terms of each emission’s respective documents and complying with current regulations. This announcement was made in a press release by CIBanco, which various issuers—including CIBanco as the common representative—shared as a significant event on the Mexican Stock Exchange (BMV).
Who is Toyota Financial Services?
Toyota Financial Services is one of the companies that shared CIBanco’s statement. They are currently reviewing and evaluating the possibility of replacing CIBanco as the common representative for both short-term and long-term emissions.
No Elements Compromising Operations or Short-Term Actions
CIBanco’s press release clarified that, as of now, no elements have been identified to compromise their operations or short-term actions. Therefore, the institution’s functions as a “common representative” remain unaffected.
CIBanco emphasized that delegates and/or representatives with the power of attorney assigned to their businesses continue to have the necessary authority to carry out acts related to their emissions, as these powers have not been revoked, limited, or considered canceled due to the temporary intervention’s initiation.
According to the Ley de Instituciones de Crédito (LIC), the “provisional administrator” has the explicit authority to grant or revoke powers and appoint fiduciary delegates. However, the law does not establish an automatic revocation of previously granted powers unless it pertains to the institution’s governing bodies, such as the board of directors and, in certain cases, the shareholders’ assembly.
CIBanco further explained that if, in the future, the provisional administrator decides to make adjustments to designations or revoke any existing powers, this situation will be duly communicated to the involved parties with proper notice and formality.
No Inclusion in Lists of Blocked or Restricted Persons
CIBanco stressed that its businesses as a “common representative” continue to operate with full legal validity. The Mexican regulatory framework provides robust guarantees for protecting the institution’s rights.
Moreover, CIBanco confirmed that it is not included in any lists of blocked or restricted persons maintained by the Unidad de Inteligencia Financiera (UIF) of Mexico’s Secretaría de Hacienda y Crédito Público (SHCP) or the U.S. Department of the Treasury.
“Consequently, there is no legal or regulatory limitation restricting the participation of public notaries in transactions related to businesses managed by this institution,” CIBanco concluded.
Key Questions and Answers
- What is CIBanco’s role as a “common representative”? CIBanco acts on behalf of bondholders in debt emissions within the local market, safeguarding their interests.
- What does CIBanco’s statement mean for its operations? CIBanco assures that its operations as a “common representative” will continue regularly, adhering to emission terms and complying with regulations.
- Why is Toyota Financial Services reviewing CIBanco’s role? Toyota Financial Services is evaluating the possibility of replacing CIBanco as the common representative for short-term and long-term emissions.
- What guarantees CIBanco’s continued operations? CIBanco emphasizes that its powers as a “common representative” remain valid, and the Mexican regulatory framework offers strong protection for its rights.
- Is CIBanco restricted or blocked by any authorities? CIBanco confirmed it is not included in any lists of blocked or restricted persons maintained by Mexican or U.S. authorities.
