This bond is linked to inflation and is backed by the Mexican federal government. Interest is payable every 6 months. These are letters of exchange with terms of no more than 360 days, drawn on and accepted by a bank, from small and medium-sized businesses. Interest rates depend on market conditions, and the interest accrued is paid by the issuer at maturity. Commercial paper is issued at short terms, and repayable on a specified date.
Companies use the proceeds to finance working capital.
This is why maturity terms are between 7 and 360 days. The maturity term is a maximum of 3 years, with a one-year grace period. This 3 year - maturity debt securities are Issued by the Bank Saving s Protection Institute, in order to face the contractual obligations and gradually reduce the financial cost linked to the savers assistance programs. This long term debt instruments belong to the Assistance Trust to the Rescue of Highways in Concession. The yield rate is fixed and interest are payable every 182 days.