Founded in 1996, Metales Yonadab is a Mexican company that manufactures metallic labels and caps for bottles, particularly for the country’s famed tequila industry, which is concentrated in and around Guadalajara. Metales Yonadab employs approximately 133 staff, 86% of which are factory workers and the remainder, administrative. The company operates a 2,800 sq meter factory that produces bottle caps for local Tequila manufacturers and exporters. With the help of Mega Leasing, Metales Yonadab’s was able to acquire a specialized machine imported from Italy which processes wooden bars by shaping, cutting, and labeling them, resulting in wooden caps for bottles that allowed the company to expand their product catalogue from just metallic caps to wooden ones.
Metales Yonadab’s Lender: Mega Leasing (Mexico)
Mega Leasing is a financial leasing and lending company that caters to underserved small and medium-enterprises (SMEs) in Mexico. Headquartered in Guadalajara, the company was founded in 2003 by the Romo family who set out to build an institution that offered financial services to small companies that were underserved by traditional banks. Leasing equipment and other productive assets often gives access to low cost financing and relieves small businesses of the burdens and risk of ownership. SMEs account for 99% of businesses and employ around 71% of the workforce in Mexico, yet almost a third of these businesses cite a lack of access to funding as a major obstacle to growth. Looking at aggregate macroeconomic statistics for the country, Mexico’s credit to GDP ratio is only 37%, well below other countries in Latin America, like Chile which has a credit to GDP ratio of closer to 122%. What this means is that a small business in a country with a higher credit to GDP ratio is more likely to obtain financing.
Mega’s leased assets span machinery, medical and construction equipment, as well as transportation vehicles that cater to a wide range of SMEs in sectors that include agriculture, industrial, tourism, transportation, and IT sectors. Mega incorporates principles of honesty, transparency, and service into its mandate which emphasizes profit with purpose. Starting with sound corporate governance,
Mega works with external consultants to continuously improve management processes and identify and manage environmental and social risks. The company also assesses the environmental and social risks of their clients in accordance with IFC’s Social and Environmental Performance Standards and places a high priority on implementing the latest enterprise resource planning systems to accurately capture financial and operational data. The company is also piloting a Gender Smart Opportunities Assessment in partnership with DEG. Moreover, through the Mega Foundation, the company supports low-income children facing adversity by providing scholarships to help them further their education. The Foundation is also a champion for children with disabilities and provides resources to help them integrate into broader society.
All figures are based on self-reported data by Mega Leasing as of
6/30/2020. The RFI profiled here is for educational purposes only and may not represent all of the portfolio holdings. It should not be assumed that investments in the RFI identified and discussed were or will be profitable. The RFIs profiled were selected based on their financial inclusion and impact with no reference to amount of profits or losses, realized or unrealized.