In light of Article 117, Section VIII, of the Mexican Constitution, the Mexican Ministry of Finance and Public Credit (SHCP) determined that creating a financial institution would be the best mechanism for channeling NADB loans to state and local public entities in Mexico. Therefore, on October 15, 1998, the Corporación Financiera de América del Norte, S.A. de C.V. SOFOL (COFIDAN) was legally incorporated in Mexico. Unlike NADB, which is an international organization, COFIDAN is a Mexican company.
By a decision of its shareholders, on October 20, 2006, COFIDAN became a non-regulated, multipurpose financial institution—known by its Mexican acronym as a “SOFOM”—which will allow it to carry out its mandate while streamlining its administrative processes and requirements. Consequently, as of the above date, the company’s name was modified to Corporación Financiera de América del Norte, S.A. de C.V. SOFOM E.N.R. (COFIDAN).
COFIDAN’s purpose is to make loans in the environmental infrastructure sector to Mexican states and municipalities and their government-run agencies and institutions, as well as to private companies, for projects and programs that have been duly approved by the NADB Board of Directors.
COFIDAN’s management and administration is entrusted to a Board of Directors composed of NADB officers.
COFIDAN and NADB work in coordination during the project development process. Once the NADB Board of Directors authorizes a loan for a project sponsored by a Mexican state or municipal government or other local public entity, the funds are channeled through COFIDAN, which enters into a loan agreement with the project sponsor. COFIDAN and NADB also work together during the disbursement and repayment phases of the loan, supervising the proper use of the funds.
COFIDAN’s offices are located in Mexico City.