MBNA and Ixe Banco to Form Joint Venture to Market Credit Cards and Consumer Loans in Mexico

WILMINGTON, DE, and MEXICO MBNA Corporation and Ixe Banco S.A. today announced that they have signed a definitive agreement to form Ixe-MBNA SOFOL, a joint venture that will issue and service credit cards and consumer loans in Mexico. Each partner will contribute 50% of the necessary capital. An MBNA executive will serve as general manager and MBNA will direct the operations of the joint venture while Ixe Banco will provide significant resources.

Financial terms were not disclosed. The transaction is expected to close in the third quarter of this year, subject to regulatory approval.

The joint venture will focus on offering credit cards and consumer loans to Mexican consumers. Ixe Banco (pronounced “Ick-say”) is part of Ixe Grupo Financiero. Ixe has built its business by providing its clients superior Customer service through a network of 27 branches in the Mexico City area. As an international consumer finance company and recognized leader in affinity marketing, MBNA brings strong operational and marketing experience.

“Partnering with Ixe Banco is a terrific fit for MBNA,” said John Cochran, MBNA’s Chief Operating Officer. “Ixe is led by a proven management team and the Mexican market for credit card products and consumer loans is large and growing. The demographics of the customers who are attracted to Ixe are ideal for MBNA. We will benefit from Ixe’s experience in Mexico, and Ixe will benefit from MBNA’s experience in marketing and servicing credit cards. Together, Ixe and MBNA will offer an exceptional range of products, backed by outstanding Customer service.”

Enrique Castillo Sanchez Mejorada, Chairman and CEO, Ixe Grupo Financiero, said, “MBNA has an impressive record of success in the United States, Canada, the United Kingdom, and Spain. That experience makes MBNA a natural fit for Ixe. MBNA’s affinity credit card concept is well suited to the Mexican consumer and MBNA’s experience marketing and servicing credit cards is an obvious advantage. Working together, Ixe-MBNA SOFOL will offer Mexican consumers throughout this country a much wider range of credit card products and services than is presently the case.”

Mexico has one of the fastest growing economies in Latin America and the Mexican credit card industry is expected to grow at a rate exceeding 20% per year over the next five years. As overall real wages increase and as inflation remains low, the percentage of the Mexican consumer population eligible for a credit card continues to increase.