UNIFIN Announces Changes to Accounting of Derivative Instruments

MEXICO CITY--(BUSINESS WIRE)-- UNIFIN Financiera, S.A.P.I. de C.V. SOFOM, E.N.R. (BMV: UNIFIN) (“UNIFIN” or “the Company”), announced today that:

Following an analysis and valuation of the accounting treatment of the Company’s cross currency swap derivative instruments, and having complied with financial, accounting and market regulatory requirements, beginning today, such financial instruments will be classified as Derivatives for Hedging Purposes.

As mentioned in the report denominated “Information regarding Derivative Instruments” that accompanies the second quarter 2015 report, UNIFIN entered into cross-currency swap contracts to mitigate the Mexican Peso-U.S. dollar foreign exchange-related risks related to the International Notes issued by the Company.

UNIFIN’s decision to classify such instruments as Derivatives for Hedging Purposes is based on the following:

1.			According to the Company’s policies regarding the use financial derivatives, under no circumstance may the Company carry out any financial transaction with speculative purposes; financial derivatives may be used only for hedging purposes.
			From an economic point of view, UNIFIN entered into cross-currency swap contracts for hedging purposes. Prior to this announcement, these derivatives were classified as Derivatives for Trading Purposes, given that previously, such instruments did not meet all the documentation required by the corresponding accounting criteria to be registered as Derivatives for Hedging Purposes.
2.			UNIFIN has now met all documentation requirements established by the financial, accounting and market regulators to register the Company’s cross-currency swaps as Derivatives for Hedging Purposes. An independent third party has verified compliance with such requirements.
3.			The Company stress-tested the underlying assets and benchmark variables, with variability scenarios between 10% and 25% of such variables. Such tests concluded that these financial derivatives provide sufficient coverage for UNIFIN.
4.			UNIFIN placed particular emphasis on complying with the policies and procedures established in the “Information regarding Derivative Instruments” report.

Any future financial information published by the Company related to its cross-currency swaps will be based on the accounting treatment for hedging derivatives.

This document may contain certain forward-looking statements. These statements are non-historical facts, and they are based on the current vision of the Management of Unifin Financiera, S.A.P.I. de C.V., SOFOM, ENR for future economic circumstances, the conditions of the industry, the performance of the Company and its financial results. The terms "anticipated", "believe", "estimate", "expect", "plan" and other similar terms related to the Company, are solely intended to identify estimates or predictions. The statements relating to the declaration or the payment of dividends, the implementation of the main operational and financial strategies and plans of investment of equity, the direction of future operations and the factors or trends that affect the financial condition, the liquidity or the operating results of the Company are examples of such statements. Such statements reflect the current expectations of the management and are subject to various risks and uncertainties. There is no guarantee that the expected events, trends or results will occur. The statements are based on several suppositions and factors, including economic general conditions and market conditions, industry conditions and various factors of operation. Any change in such suppositions or factors may cause the actual results to differ from expectations.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150911005819/en/

Investor Relations
UNIFIN
José María Muñiz Liedo, +52 (55) 5249.5805
Chief Institutional Relations Officer
[email protected]
or
David Pernas Sánchez, +52 (55) 4162.8270
Investor Relations Officer
[email protected]
or
In New York
i-advize Corporate Communications
Juan C Gómez Stolk, +1 (646) 462 4517
[email protected]
or
[email protected]
Web Page: www.unifin.com.mx

Source: UNIFIN

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