Developing green loans for Mexican SMEs

Operadora de Servicios MEGA was set up in Mexico in 2003, with the status of a leasing company. It is dedicated to providing financing solutions to sectors underserved by traditional banking. MEGA is majority owned by its founder’s family, the Romo family, and DEG became a shareholder in 2017 as a strategic partner. The company has five branches and owns a used-car leasing subsidiary, Mega L.P., in San Diego in the USA.

MEGA targets SME clients and aims to develop its loan portfolio with companies committed to respecting environmental and social good practices, developing innovative technologies and also promoting the inclusion of women in society.

The project involves a USD 30m senior credit line to Grupo MEGA with a 3.5-year maturity. It is Proparco’s first operation with this financial institution. It will be dedicated to the development of the institution’s green loan activity, with operations for the institution’s SME clients, particularly in the agri-agro sectors. 

The project’s main impacts concern the support for the country’s economic development by financing MEGA’s corporate clients, mainly MSME clients underserved by Mexico’s banking sector. The project will also support some 2,200 jobs, mainly in the companies financed by Proparco’s credit line. On the environmental front, a third of the total amount of this credit line aims to finance the renewable energy and energy efficiency projects led by SMEs and midcap companies operating in various sectors of Mexico’s economy, in particular agriculture via equipment to reduce water use and improve energy efficiency in agricultural production.