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Unifin Financiera SAB de CV
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Greetings, and welcome to UNIFIN's First Quarter 2022 Conference Call. [Operator Instructions] If you have not yet received a copy of the earnings release, you can find it on UNIFIN's website at www.unifin.com.mx or please feel free to contact the Investor Relations team at unifin_ri@unifin.com.mx, and they will provide you with a copy immediately.
Forward-looking statements may be made during this conference call. These do not necessarily take into consideration changing economic conditions, industry conditions, the company's performance or financial results. These forward-looking statements are based on several assumptions and factors that could change -- cause actual results to differ from current expectations materially. Therefore, UNIFIN asks that you refer to the disclaimer located in the earnings release before making any investment decision.
Next, I would like to introduce Mr. Sergio Camacho, the Chief Executive Officer. He will discuss the first quarter 2022 results. Mr. Camacho, please go ahead.
Hi. Thank you, Donna. Hi, everybody, and good morning. Today, here with me is Sergio Cancino, Chief Financial Officer; Mariana Rojo, Head of Corporate Finance and Investor Relations; and Nayeli Robles, our Head of Economic Analysis and Strategy. After our first quarter results discussions, we will open our usual Q&A session.
First of all, I mean, we are very pleased to announce that we have reached an agreement with the bondholders of our $200 million international notes due in August 2022 to be extended until May 2024 under favorable conditions, and we're expecting to close documentation in the next few days. I would like to start this presentation by highlighting UNIFIN's solid financial position and strong fundamentals. We have a well-diversified portfolio backed by solid assets.
During the quarter, excluding Uniking -- Uniclick, the company, as committed to market concerns, decreased originations 8.7% compared to the previous quarter as we selectively sold opportunities in sectors and regions with higher growth and stability. We also continue working to strengthen our portfolio, closing the quarter with a nonperforming loan of 4.2% compared to 4.9% in the first quarter of last year. Our collections improved significantly, going from MXN 5.3 billion to MXN 6.7 billion, a 28.3% increase versus the first quarter of last year.
Turning to our portfolio. We maintain a well-diversified portfolio in terms of sectors mainly due to our strategy of targeting the most resilient sector with the best conversion rates and growing GDP. The total loan portfolio reached MXN 74.6 billion in the first quarter, a 14% increase compared to MXN 65.4 billion in the first quarter of 2021, demonstrating once again our prudent origination strategy focused on key products. This quarter, our originations were mostly focused on the commerce and services and transportation and logistics sectors, representing 40% and 17%, respectively, of total originations.
Moving to our asset quality. Nonperforming loans fell by 70 basis points compared to the first quarter of last year, closing at 4.2%, continuing the downward trend. We expect NPLs to be at similar levels through the year. We are experiencing further recoveries of our portfolio as the post-pandemic economic conditions continue to improve.
Collections increased 28.3% when compared to the same period of last year, closing at MXN 6.7 billion and up by 17% versus the fourth quarter of 2021, driven mainly by the economic recovery, asset quality improvement as well as our proactive collection efforts and constant risk monitoring. We expect collections to continue to recover as economic conditions rapidly improve.
The NPL coverage ratio for the first quarter closed at 82.8%. The loan loss reserve for the first quarter was MXN 2.6 billion. Split by business line, our auto loans, factoring and other loans lines are all 100% covered. Leasing, our largest business line, has a coverage ratio of 78.7%, above our historical recovery value.
Total financial liabilities closed at MXN 76.2 billion, an increase of 8.7% compared to MXN 69.5 billion in the first quarter of last year. Average maturity was 42 months, and the total funding cost in pesos was 10.5%. Our fixed rate financial liabilities fell to 80.3%. Our floating financial liabilities increased toward 19.7% from 14.9% in the same period of 2021. Unsecured loans stood at 78.4%, and secured loans accounted for 21.6% of the total at the end of the quarter. UNIFIN financial liabilities are split between U.S. dollars and Mexican pesos, 71% and 29%, respectively.
During the quarter, we tapped the local market through a public bond offering, Cebures, for MXN 3 billion with a term of 364 days, equivalent to 13 coupons of 28 days and a variable rate of TIIE plus 140% (sic) [ 1.40% ], a significant reduction in our cost of funding. In the offering, a broad base of international investors participated. As demonstrated by this transaction, the domestic market continues to show confidence in UNIFIN, its solid fundamentals as well as its operating, financial and organizational outperformance.
Moreover, the company renewed all of its revolving facilities, demonstrating the confidence brought by -- in UNIFIN by its lenders. For the rest of 2022, we will continue to seek alternative funding sources. We'll seek to tap during the second quarter of this year medium- and long-term maturities for up to MXN 4 billion with a partial guarantee from development banks that will increase the investor base and the depth of the transaction. In addition, we are working on incremental capacity in our private securitization for MXN 1.5 billion, a warehousing facility for $200 million, a private placement for at least $100 million in the next 3 months. We are evaluating the best funding option for the company.
The capitalization ratio stood at 17.3% in the first quarter, a decline versus last year, mainly explained by mark-to-market valuation of our hedging instruments due to FX and interest rate variations during the period. The financial leverage ratio is 5.4.
Interest income increased by 6.6% versus the first quarter to MXN 3 billion, mainly driven by growth in the leasing and Uniclick business lines. Leasing represented 71% of interest income. The portfolio yield stood at 17.2%, in line with the previous quarter as explained by the conservative growth in our portfolio. The adjusted financial margin for the first quarter closed at MXN 997 million, a 51.1% increase compared to the first quarter of last year, mainly related to an improved asset quality across the portfolio that resulted in higher profitability. Interest cost decreased 4.3% to MXN 1.8 billion.
NIM remained stable at 5.8% for the quarter, and we expect these ratios to gradually increase in 2022 due to an improvement in asset quality across our portfolio. OpEx as a percentage of sales closed at 13.6% for the quarter. Net income for the quarter increased by 42.5% versus the same quarter in 2021 to MXN 438 million, driven by an improvement in the financial margin, lower interest costs mainly explained by the international notes repurchase that impacted in 181 million, better asset quality and normalization in provisions due to improved asset quality. Return on assets stood at 1.8%, a 31 basis point increase compared to the same period of last year, explained by portfolio growth during the quarter. Return on equity increased 273 basis points compared to the first quarter of last year, standing at 12.7% due to sequentially higher net income.
Uniclick continues to deliver great results. Interest income related to Uniclick increased 10.2x compared to the first quarter. Origination increased 20% when compared to the fourth quarter of last year and 4.7x when compared to the first quarter of last year, reaching MXN 792 million. Uniclick represents 2.6% of our total portfolio and 14.2% of the quarter originations. Asset quality remains in line with expectations. We now have more than 1,500 clients, a 30% increase when compared to 1,226 clients in the fourth quarter of last year.
So with that, thank you very much for joining in our earnings call, and I would like to begin with our Q&A session.
[Operator Instructions] The first question today is coming from Natalia Corfield of JPMorgan.
Sergio, I don't know if I heard correctly, but you said that the $200 million bond was renewed under the same conditions. So my first question is to -- if you could confirm if this is correct or not? And if not, can you disclose the conditions?
Also, the same for your credit lines. If I'm not mistaken, I'm seeing that I think NAFIN and Scotiabank, they renewed at slightly higher rates. It would be good to know if there's anything else related to these renewals. And I have another question -- or if you want, you could answer those, and I have a couple of other questions, too.
Well, yes. I mean what I can confirm as of today is that we successfully agreed to roll over the maturity of August until May of 2024 under very favorable conditions for the bondholders and for UNIFIN, considering the market conditions. Once we finalize all the legal paperwork, we will be able to comment further on this issue. But the fact is that we have already agreed to an extension of that maturity.
Correct. So not at the same conditions, you probably will see the conditions at a later time.
I cannot disclose further on that issue.
All right. Okay. And Sergio, just to clarify also, the profit from the buyback of the bonds, are they on interest expenses and it's MXN 180 million?
Yes.
All right. On the Cebures, I think one milestone for UNIFIN is the placement of the Cebures in the local market, the longer term. Do you have any updates on that?
Yes. The days that we have announced to the market continue to be there. We're expecting to tap the market by the end of May or at the beginning of June, around those days. Everything is going as planned. And I can confirm that we have received a strong and solid interest from stakeholders who want to participate in this Cebures [ submission ] in the local market, trying to get a tenor that go from 5 to 7 years.
All right. And I think more people probably are on the line, just the last one. We were expecting you to report the results yesterday. It came later, it came today. Was there any reason? Or is that...
We had updates. I mean it's -- we have an issue on our systems, and we have on parallel, early in the morning, our shareholders' meeting. So we have some issues on the systems, and that's the only -- that's the cause of the delay. Sorry for that. It was like Murphy's law.
The next question is coming from Nicolas Riva of Bank of America.
I have 2 questions. The first one, so the collections on the loan portfolio exceeded the loan originations by over MXN 1 billion, but yet, the cash position was slightly down quarter-on-quarter. If you can explain why the cash position came down despite collections exceeding originations.
And then the second question, Sergio, if you can give an update in terms of your debt maturities for this year and how much you have covered already. So my understanding was you had roughly $1 billion in debt maturities this year. And I remember, I think in the first quarter, you had raised between $150 million and $200 million, and then you also raised money in the local debt market, another $150 million. I know you're extending the private placement. But if you can give an update in terms of how much you have covered already of your debt maturities this year and what's the funding gap.
Yes. As we said, I mean, all of our rollover facilities have been rolled over successfully. And what I can confirm is that all the agreements or all the talks that we have with those facilities are on the best interest to roll over the upcoming -- on the rest of the year.
As I said, we reached an agreement for this maturity due in August so we are getting rid of that concern that the market has. And we basically paid around $300 million on maturities during the first quarter. Of course, we also spent some money in repurchasing the bonds. And what I can confirm for the rest of the year is that we will continue under very conservative risk management approach, putting a lot of emphasis on our cash collections and of course, on our cash levels. And that's basically what I can say.
Okay. And Sergio, one follow-up. The amount of revolving bank facilities this year that you have already rolled over, how much was that amount?
Nicolas, basically, all of the revolving lines that we have, have been renewed without any trouble.
Okay, okay. And how much was the amount of those revolving facilities?
Yes. Give me 1 second. Around MXN 6 billion.
The next question is coming from Alexis Panton of Stifel.
I know you said you couldn't disclose much on the terms and conditions of the '22 refinancing to '24. But can you assure us that the extension doesn't include any collateral offer to those -- to that bondholder, and -- if that is the case? Or if collateral was offered, is that actually permissible under the terms of the remaining bonds?
We haven't had obviously much time to look at the numbers and absorb this since you reported. That's my first question. I'll wait for you to answer, and then I'll ask a couple of other questions, if I may.
Yes. Yes, I can confirm that does not include any collateral at the moment.
Okay. Great. Second question, you -- when we spoke a few weeks ago, you mentioned you would potentially have an announcement to sell the drillship concurrent with this earnings release. That's also what you mentioned...
Yes. Those negotiations, Alexis, continue to be there. We are just waiting on the final proposal that we are discussing at the moment. And what I can confirm is that if those negotiations continue to succeed, we are going to be selling -- we have a market valuation, and this proposal goes in those levels from 215 million to 235 million, depending on the spare parts and many other things. But it has not been formalized, so that's what I can tell you at the moment.
Okay. I have one final question on your capital. So we're seeing your capital ratio continue to gradually decline. But when we strip out certain items, the duration is significantly faster. I mean if I look at the end of 2019 and I adjust for the drillship markup and the capital injection, your capital will be about MXN 6 billion despite the fact that you've actually reported cumulatively about MXN 3.3 billion of profits. So it seems like there's an underlying capital -- significant rapid capital deterioration problem from the underlying business itself.
I acknowledge you paid out about MXN 2 billion in dividends and share buybacks during that period. But even when you adjust for that, there seems to be a rapid shrinkage of capital. And I was wondering what you intend to do to address that trend that I think is -- when you take out the adjustment, is significantly worse than it appears, just looking at the ratios as a whole. That's my point.
I mean -- yes. I think that if you compare to such significant extended period of time, I will need to take out the negative effect that we suffer under the pandemic. But I will return to you with more details on that analysis to answer any questions or clarify any inquiries you may have.
The next question is coming from Jamie Nicholson of Crédit Suisse.
I have 2 questions. The first is I'm wondering if you bought back any of your bond debt in the first quarter or through April.
And then secondly, regarding your capital, a follow-up on Alexis' question about the deterioration and the further deterioration this quarter. You had mentioned previously you don't feel there's a need for an equity infusion. And I'm wondering if there's any capital level where you feel that might be necessary or any other triggers that you would look at where you would feel like you would go ahead and initiate a capital increase?
Sure. We -- after the downgrade that we received from Standard & Poor's, we decided not to continue purchasing any bonds because, contrary to our view, that was something that they do not like.
Getting back to the capital injection or capital strengthening of the company, if you read both reports on the downgrade by S&P and Fitch, they do not refer anything related to the capital structure. If for whatever reasons we may feel or we have the discussions on -- with the rating agencies and put that as a metric that will derive in a further deterioration of the credit or an improvement on our rating, on the other hand, we will definitely look and be on the position to do a capital increase.
But at the moment, we believe that with the current levels that we are -- that we have, the solid fundamentals of the company continue to be there. And as I said and as I commit to the market on the last conference call, I mean, we have done everything that have been on our side to strengthen and to separate the sentiment that investors may have on UNIFIN with the rest of the nonbanking financial institutions. We -- as I commit, we decreased our originations, we increased our collections, and we continue to have a very healthy level on our cash levels.
So at this point of time, we feel very, very comfort on the way that the company has moved. I think that the company has moved even faster than what the market anticipate in trying to solve any concerns the market may have, and we will continue delivering that. So in the event that we need or we see or perceive the need for a capital increase, for sure, we will act promptly as we have done in the past.
Now I think that the best example on that has to do with -- in the COVID. During the COVID, the company was able to raise equity. So we feel very comfortable. We have a lot of trust on -- by the Board and by some of the key shareholders. So we will act immediately if needed.
And then just one final question. I saw that you posted your audited financials on your website this morning. The audit, I guess, was dated April 29. So -- and I think you had previously mentioned that was a condition of issuing the longer-term [ versatilis ].
So now that, that audit is completed, is that going to be the next financing that we're going to see? Is that coming -- you mentioned May or the beginning of June. But what's the sequence of when these additional financing -- refinancings and financings will come? Will the [ versatilis ] be the first one in the pipeline or some of the others?
Yes. And you're absolutely correct. We -- and I will say that under this contamination on nonbanking financial, we received, I will say, the hardest audit that I have ever seen in this company. It was a very deep analysis, very professional analysis from our auditors, and that takes a little bit more time because of further revisions that they carried out. So we feel very, very happy and proud to have had these audits with any negative comments on our financial situation.
Today, we have the shareholders' meeting. And with that, we're going to receive the approval by the banking commission in Mexico to issue the medium- to long-term Cebures. And we will continue to stick into the plan. So that -- those are the days that somehow I commit to the market, and we will continue on track for issuing those Cebures in late May, early June.
The next question is coming from Nick Dimitrov of Morgan Stanley.
A lot of my questions have been already asked, but I still have a couple. So Q1, this is the quarter when your collections exceeded origination. Now that you are almost done kind of terming out the UNIFIN '22s, how should we think about collections versus originations in the coming quarters? Are we going to see a continuation of the trend where collections exceed origination or you believe that maybe now we feel more comfortable with liquidity and we're going to go back to the days when origination exceeds collections?
No, Nick. I think that we will continue under this conservative approach until we see that the international markets are open again for UNIFIN. In the meantime, we will continue being very, very conservative, trying once again to fully separate our name for the rest of the contamination in the sectors, and that will be the case.
Got it. Okay. It sounds very reasonable to me. Then going back to the government program that looks to incentivize SME lending. If I remember correctly, originally, you were thinking of issuing MXN 4 billion. I think you're still on track to do that, which is roughly $200 million. And the idea was to pay off UNIFIN '22s.
Now that those will be extended by 2 years, I assume the 4 billion will be used to meet any of your bank lines. Or how should we think about it? I'm just trying to figure out. Because the capacity was MXN 10 billion, and the idea was MXN 4 billion to meet the $200 million UNIFIN '22s and then the balance of MXN 6 billion, which is roughly $300 million, was supposed to be allocated towards paying off UNIFIN '23. I was just wondering whether the math kind of still works.
Well, actually, the math is even better.
Even better, yes, yes.
So now we will continue, I mean, under this strategy or liability management, trying to substitute international debt with national debt. I mean the reduction on the cost is significantly. Just to give you an idea, if our bonds were trading at par and considering the swap to pesos vis-Ã -vis the rates that we are thinking or that we have seen indications in the local markets, you can have a benefit of between 400 to 500 basis points in the cost of funding. So we will continue with that strategy for sure. And right now, we believe that we are in a much, much better position for doing this liability management.
Okay. Okay. Got it. And I assume -- you kind of mentioned -- sort of confirmed you're on track to issue or to raise $200 million locally for a securitization transaction, right?
Yes. I mean we have plenty of alternatives from deeper and different sources. We have received, for example, consolidated offers for doing things. But we are being very, very cautious with a very cold mindset on what is the best for the company and, of course, for the stakeholders of the company. So we will continue acting under, I would say, a very prudent way and trying to do the best for both -- for everybody.
And the time line regarding the securitization transaction is early May, June?
May, June, yes. You're correct.
May, June, okay, okay. And last question, selling the oil drill, is there going to be a gain? Or is it going to be around where you have it marked?
No, I think that the value or the initial -- the negotiations or talks are pretty much in line with the valuation that we have on our balance sheet. Just to make the comment, I mean, we have 2 appraisals on the rig. And of course, these appraisals went through the audit on PwC under -- with their Houston office. So a lot of people looked on that valuation.
And regarding some concerns on the -- let me put it this way. The name of the appraisal that we use, we sought to go to the top 4 firms, and we received an appraisal from Pareto Offshore valuating the drill on 225 million to 275 million. So we're very confident on the valuation that we have.
And once again, the interest that we have received from -- I have a nondisclosure agreement on the names and everything. But the interest from the people who want to buy the drill is because they have a plan to move actually -- to move into deep waters in which they will significantly get a better rate on performing on that drill. So no, I mean, we're very, very, very confident that the valuation that we have in our balance sheet is accurate.
The next question is coming from MartÃn Lara of Miranda Global Research.
I just have 2 questions. Do you plan to issue long-term debt during the rest of the year in addition to the long-term Cebures and by what amount? And the second question is where do you see your short-term debt and cash position by the end of the year?
MartÃn, we are running those numbers for the forecast. I think that it will depend on the timing on the rest of the alternatives that we have for funding. We have in my desk a term sheet for issuing a private placement for a tenor of 7 years. That will be the other issuance that we may get into. But once again, I think that the first thing or the first goal that -- the metric that the company has to do with the local market, just all the benefits that I previously mentioned.
Sorry, I was on mute. Sorry, let me get back. No, we're running the numbers on the cash position for the rest of the year depending on the different alternatives that we are analyzing for funding our goal and our metrics targets. But we'll continue to -- with this local issuance because of all the benefits that I mentioned to you regarding the cost of funding. But also, we have received a letter of intent for issuing a private placement in an amount of 150 million for a tenor of 7 years. MartÃn?
Yes, sorry. 150 million?
Yes.
The next question is coming from Gilberto Garcia of Barclays.
I had a follow-up on Natalia's question -- I think it was Natalia's question about the bond repurchase gains that you mentioned in the press release resulted in a reduction of interest expenses. Is that related to the lower volume of debt now that you repurchased the bonds? Or is that the gains that you recognized from buying those bonds at below par?
I think it's a mix of both things. But of course, the most important contributor to the reduction on that number has to do with the repurchase of bonds.
Okay. Can you say how much did you repurchase in the first quarter?
Yes. Give me just 1 second. Yes, we bought $60 million on the bonds.
Okay. Then on a different subject, just to make sure I heard correctly. You mentioned that you expect collections and interest income to improve as economic conditions continue to improve.
Yes. Yes, we will continue moving on a very conservative way to provide with tranquility, let me put it this way, to the market. So we will continue being very responsible in our handling of cash and collections and of course -- and getting this into a more like a medium- to long-term strategy, the situation that we saw with some other players in the local market. Of course, our position -- or we'll eventually position our company on a much more favorable market condition vis-Ã -vis the clients that we can get. So we are very positive on the fundamentals of the company. Uniclick, as I said, continues to deliver. But of course, for the immediate future, we will continue being very conservative.
Okay. And then a final question on the audit statement. We saw that the letter from the auditor was dated as of today. You mentioned that this was a very complex and challenging audit. But did you receive the actual -- like the final sign-off from the auditors today, this morning?
Yes.
The next question is coming from Rafael Elias of BancTrust.
Congratulations for the great results and the great achievements, like the extension of the bond. I wanted to ask you about a couple of research reports that came out a few weeks or like a month ago that -- I believe that sadly put out nonpublic information when they said that the future local issues would have a guarantee from the government of between 25% and 30%. By publishing these reports, obviously, that information became public. Now that it is public, I want to ask you if you could confirm that this is going to be the case.
Yes, it's going to be the case.
And when are you going to be able to make an official announcement on what the level of guarantee is going to be and how much is it going to cover in terms of the amount of issuance that you expect to place in the Mexican market?
Yes. What I can confirm as of today is that we have -- we already received the approval from -- I'm sorry for saying this in Spanish, but it's somehow difficult. I mean [Foreign Language] from the Ministry of finance, they have already approved that. They are going through only -- they were also waiting for the KYC files, the audited numbers.
And that's why I always put the time frame of late May, early June. Everything has -- is going as planned. And yes, the amount that we can tap with those guarantees, it's around MXN 10 billion.
So it's confirmed?
Yes.
The next question is coming from Chelsea Colón of Aegon.
Can you guys hear me?
Yes.
I just have a couple of follow-ups. Just real quickly on this government partially guaranteed lending that we were just talking about. Is there any -- are these secured by any of the leases or anything? Or are they unsecured loans?
They are all secured.
Okay. Great. And then also, earlier, someone had asked a question about why the cash balance did not increase when your collections exceeded your originations by quite a bit this quarter. I didn't really understand your answer to that. Can you just explain again?
Yes, yes. I mean we paid debt on an amount around $300 million in the quarter. We also repurchased $60 million on bonds. So that -- I mean we can share lately (sic) [ later ] the reconciliation of the numbers. But that -- those are like the main reasons for that, I mean. And I mean, for us, I mean, having MXN 4 billion in cash, we believe it's a very strong and sufficient number. Particularly, we already announced the rollover of the maturity that we have in August, so we feel very, very comfortable with those numbers.
Right. But by my calculation, the net debt balance didn't really change. So I would think that the net debt will come down if the explanation was to pay down debt and the repurchase of bonds.
Yes. I mean we can get back to you with the calculation, of course.
The next question is coming from Paulina Moreira of Compass Group.
I was tuned out of the call so I'm sorry if you already answered this. But my question is on origination. How have you seen the originations in April? Are they at the same rhythm as in the third quarter? And how can we expect the difference between collection and origination for the next quarter?
Yes. I mean you're going to see, once again, somehow a similar gap between originations and collections being very prudent. In April, it was the case. So yes, I mean, once again, I mean, we will continue being very, very conservative on those metrics.
Okay. And for the full year, we had a guidance of few net collections and originations. Is it still the guidance?
I think that we're going to revise those numbers. Of course, our budget has been modified just because of everything that we have discussed and everything that has gone into the market. But what I can tell you for now, because we are building on those numbers for the rest of the year, is that we will -- that we are going to continue being very, very conservative.
The next question is coming from Helena Lee of HSBC.
Just had a follow-up question on the credit ratings. So the ratings watch negative, part of the watch negative was due to, I guess, the lockout from the international funding markets. It doesn't sound like that's going to resolve within the next 3 months. However, you've laid out a pretty good plan about extending out tenors in the local markets.
So my question was, how do you see the ratings watch negative resolving itself with the 2 rating agencies, S&P and Fitch? And I guess related to that, so S&P has your local ratings at BBB-. So if the ratings go down another notch, would that prevent you from issuing Cebures in your local markets?
No. Well, let me answer first on the back -- on the question. No, I mean, there are some other rating agencies that somehow separate the international concern from the fundamentals of the company. So for those issuance, we are not using S&P.
I think and this is our perception and for me it's very clear, that if we were able of rollover-ing the maturity for another 2 years, it's an implicit access to the international market. However we believe that once that we issue the Cebures on a tenor of 5 to 7 years, it's going to be sufficient to understand that the penetration that we can have in the local markets is there. And that's what I can comment for that.
Okay. So in other words, it's not really the assets of the international market. So if you show that you're able to access the local markets and scale as well as longer tenors, that would be enough to resolve the ratings watch in your opinion?
I will argument (sic) [ argue ] that for me, it's very, very clear and sufficient to show that. And of course, everything that has gone or has performed at the operational level, I think that the numbers that we present this quarter are very, very good numbers considering the whole environment that we have, both in -- let's say, in the country on the GDP of the country and of course, with all the noise out there on what the situation on 2 -- these 2 other players.
The next question is coming from Alexis Panton of Stifel.
A quick question on -- you mentioned that you have to sell the drillship. I was just wondering, without the drillship, what impact -- or how much income are you receiving currently from the drillship and obviously, therefore, what impact that will have on the revenue of the company. And how much is it contributing basically to the top line of UNIFIN?
I mean, of course, it's our largest asset, let me put it this way. But no, I mean, we have a nondisclosure agreement on the terms that they want to purchase the drill. So what I can comment is that, of course, it's going to be a good announcement when it materializes.
Right, right. But my question is how much reduction is the -- obviously, it's been contributing to the revenue of the company to date. So without it, I'm wondering what...
I know. Let me get -- give me just 2 seconds. It's MXN 30 million per month.
MXN 30 million, 3-0, right?
3-0, yes.
The next question is coming from Steve Robinson of Aristeia.
And just trying to piece together the pieces -- the update on the financing front. So maybe it would be helpful if you could just walk through the remaining obligations for 2022 that are maturing and then for '23 and then just how, broadly speaking, the -- or specifically as you can be, about how you plan on meeting those. I mean, obviously, you updated on the '22 bond maturity being extended. But maybe you could just walk through what the remaining sort of sources and uses are for '22 and '23. Because -- a bunch of new information here, but I'm trying to bring it all sort of together, if you could.
Yes. Just give me 1 second. I'm pulling here on my calculator. Yes, the maturity that we have for the rest of the year, it's between $150 million to $200 million. And of course, we are -- as I said, I mean, we have the plans to access the local market. We have some other sources of funding to cover that.
So right now, I mean, for us, we are not concerned at all on the rest of the maturities for the year. And for next year, I mean, our plan calls for issuing MXN 6 billion in the first quarter of next year, also with these partial guarantees that we currently have. And with that, we will do something for the 2023 maturities.
Just remind me what the financing requirements are to roll for '23. You said that you have planned to enter local markets for...
We'll do a liability management issuing locally and paying the international notes on the 2023.
Got you. And how about any of the local lines, et cetera? Are you just expecting all those to be rolled?
Yes, yes, which has been the case as of today, I mean. And of course, the commitment that we have with commercial banks are there. They were very -- they were -- the comment that I received earlier today from some of the deputy CEOs on the commercial banks were very, very positive. So we do not see any trouble in rollover-ing those facilities.
And the revolving facilities that we have with the development banks, it's like an evergreen facility. I mean the tenor, it's a rollover -- it's an automatic rollover unless we miss a payment with another facility. So we feel also very comfortable with rollover-ing everything that we have upcoming.
Yes. That's good. And sorry, just one other question on that. Did you say whether or not the unsecured bank lines that you have, are there -- as those get rolled, would you anticipate or have you provided any collateral for those extensions?
We have not provided any collateral on those unsecured lines. They have been rolled over only with the credit profile of the company.
The next question is coming from Nick Dimitrov of Morgan Stanley.
Just a follow-up from me on the government guarantee program. Is there any clarity on the cost of the program? And then I think there's been some confusion with regard to exactly what is guaranteed. I think the initial numbers that you mentioned to investors was 25% to 30%. And 25% to 30% as to what -- of what?
On our program? Let's say if I have a program of MXN 10 billion, which is the case, they will put a guarantee of MXN 2.5 billion on that facility for the first clauses. And the cost of those guarantees is between 150 to 200 basis points in pesos.
Okay, okay. But that is on your loans to the SMEs, right?
No, that's on the issuance -- on a public issuance in the public market.
On the Cebures?
Yes.
Okay, okay. That's important. And what about the cost?
150 to 200 basis points.
150 to 200 bps, okay.
In pesos.
The next question is coming from Adrian Garcia of Invesco.
Can you confirm the amount that you mentioned that you used to buy back bonds? I think I got $60 million. Is that $60 million the face value of the bonds that you retired or the cash that...
No, that's the face value of the bonds that we occur -- acquired.
Okay. And then, as you know, a couple of investors asked the difference in the change in the cash position and why collections minus -- origination less collections is not matched to the change in cash. And you mentioned that you're going to provide a reconciliation to one of the investors.
So I think there's a lot of focus on understanding that. If you're going to provide that to an investor, I would encourage you to provide that type of reconciliation in your press release. It's something that draws a lot of attention of people to understand the change in cash position. So if you're going to disclose that to an investor, I would appreciate it if you could...
We will -- and I perfectly understand your comment, Adrian. We will do, and we will provide that reconciliation in our website.
The next question is coming from Chelsea Colón of Aegon.
Just one more clarification on the bank lines that you rolled in the quarter. You said that you were able to roll over all of the revolving lines. Did you mean you were able to roll over all of the lines that were -- or that had maturities so they needed to be rolled in this particular quarter? Or did you proactively roll all of the lines that you need for the entire year?
On paper, the ones that rollover in the first quarter. Verbally, we are rollover-ing everything for the rest of the year. I mean we cannot roll over something if it has not been due, let me put it this way.
Right. But what you're saying is the discussions have been had about rolling them all.
Yes.
Okay. And then just one more follow-up as well on the government-guaranteed lines. That cost of 150 to 200 basis points, who pays that cost? Do you pay that on top of whatever interest rate that you're getting? I don't entirely understand.
Yes. It's like a commitment fee, if I may use that word.
At this time, I'd like to turn the floor back over to Mr. Camacho for closing comments.
Yes. No. And as a final remark, I mean, the reconciliation that you're asking, it's already been provided in our filing to the Mexican Stock Exchange. So you can check on that. And of course, the volatility on the equity has to do with the mark to market that we have in all of our derivative structure.
So that's what I will address as a final comment. Once again, we feel very, very proud of the numbers that we presented. We will continue delivering our commitments, and we're going to be here for any additional questions you may have. Thank you very much, and have a nice weekend.
Ladies and gentlemen, thank you for your participation and interest in UNIFIN. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.