Grupo Imsa Obtains 6-Year Financing of $547 Million Mexican Pesos

    MONTERREY, Mexico--May 30, 2003--Grupo Imsa, S.A. de C.V. (BMV:IMSA) announced today that it has successfully placed an issue of certificados bursatiles (peso bond) for 547 million Mexican pesos.
    This placement is part of a bond program that was set up in May of 2002 with the Comision Nacional Bancaria y de Valores (Mexican National Banking and Securities Commission).
    The peso bond bears a fixed interest rate of 9.3% and is payable in one installment when it matures in six years. Standard & Poor's and Fitch Mexico gave a credit rating of AA to this bond issue.
    Since Grupo Imsa's revenues are closely tied to the US dollar, the Company used a swap to convert the 547 million peso issue to US$52.6 million bearing interest at a rate of 106 basis points over six-month LIBOR. The resources obtained from this issue will be mainly used to pay debt, so the Company's total debt will not increase. The arranger for the issues was Acciones y Valores de Mexico.
    Mr. Marcelo Canales, Chief Financial Officer for Grupo Imsa, stated, "The certificados bursatiles program for 3 billion pesos was very successful, with this 547 million pesos transaction we completed very competitive financings for 100% of the program. In fact, this transaction represents one of the lowest fixed rates for a Mexican company certificado bursatil with a similar maturity." Mr. Canales added: "With this transaction and a syndicated loan that we are working on, the Company will substantially improve both the average life and the average cost of its debt."
    Grupo Imsa, a holding company, dates back to 1936 and is today one of Mexico's leading diversified industrial companies. The Company operates in four core businesses: steel processed products; automotive batteries and related products; steel and plastic construction products; and aluminum and other related products. With manufacturing and distribution facilities in Mexico, the United States, and throughout Central and South America, Grupo Imsa currently exports to all five continents. In 2002 Grupo Imsa's sales reached US$2.6 billion, of which close to 55% was generated outside Mexico. Grupo Imsa's shares trade on the Mexican Stock Exchange (IMSA) and, in the United States, on the NYSE (IMY).