Economy Mercado Libre issued its first series of the Future Flow Financial Trust in the capital market

[Inkriql]

The Mercado Libre company issued its first series of Future Flow Financial Trust in the capital market for a total of 600 million pesos, with the objective of being able to finance its Mercado Pago digital payment and collection management system.

With this credit the company will improve the terms in which the sellers receive the funds.

The tool, structured by First Capital Group and which obtained the highest credit risk rating (AAA) by Fix Ratings, seeks the securitization of future credits, originating from sales under the Mastercard and VISA credit card systems.

The closing rate for the VDF "A", for 600 million pesos, was 59.4% TNA being the lowest in recent weeks.

This tranche received offers for 1,153.1 million pesos from a variety of investors (mutual funds, banks, insurance companies, among others), which generated an over-demand of 92% of the amount tendered.

The Trust qualified as SME CNV given that at least 70% of the credits of the Trust come from operations held with Mercado Libre sellers, which qualify as SMEs CNV.

Sebastián Alberio, senior manager of First Capital Group said: "We are very happy to be able to accompany one of the most innovative companies in Argentina, and a reference in Latin America, in this new venture into the local capital market."

"This case was to bring an alternative to the growing need for financing of one of the most important business units with the greatest potential that the company has, such as Mercado Pago," he said.

The firm captured the attention of the local capital market with a new issue of financial trust, this time, financing its Mercado Pago business unit, and obtaining bids above 1,100 million pesos.