Mercader Financial receives NADB loan to fund border-wide program for the purchase of low-emission vehicles in Mexico
- $500-million-peso loan for diesel and natural gas powered buses
- Loan is in the form of a revolving line of credit
San Antonio, Texas: The North American Development Bank (NADB) and Mercader Financial, S.A., SOFOM, E.R. signed a peso-denominated loan worth an estimated US$27.98 million to fund a financing program for the acquisition of low-emission vehicles manufactured by DINA Camiones S.A. de C.V.
In June 2014, the Board of Directors of NADB and the Border Environment Cooperation Commission (BECC) approved a pilot bus program through which 58 buses were purchased by public transportation companies in the cities of Ciudad Juarez, Chihuahua; Hermosillo, Sonora; and Tijuana, Baja California. Given the success of the pilot program, Mercader requested a second loan that could initially support the sale of an estimated 250 low-emission vehicles for communities located within the 300-kilometer border region in Mexico.
“This new financing for Mercader’s program will allow for the ongoing expansion and modernization of public transportation systems with low-emission vehicles in more communities,” stated NADB Managing Director Gerónimo Gutiérrez. “We are pleased to see local governments, public transportation providers and the private sector working together to improve urban mobility in an environmentally responsible manner that will enhance the quality of life of border residents.”
As in the case of previous pilot program, the purpose of this new project is to improve public transportation fleets by facilitating the financing of low-emission vehicles, and thus contribute to the displacement of greenhouse gases and other air-borne pollutants in urban areas.
“At Mercader Financial we are excited to be able to offer our clients financing options with a vision based on sustainability,” stated Miguel Angel Velasco Martinez, CEO of Mercader Financial. “The North American Development Bank will continue to be vital so that our clients may have the best tools to support their transportation models.”
The project was approved by the NADB-BECC Board of Directors on September 13, 2016. The use of new diesel vehicles that comply with the standards established by the U.S. Environmental Protection Agency (EPA) in 2014 is expected to lower nitrogen oxides (NOx) and hydrocarbons (HC) emissions by approximately 50% and achieve nearly 24% lower carbon dioxide (CO2) emissions, compared to older vehicles. In the case of natural gas-fueled vehicles, these pollutant emissions are practically eliminated.