IFC Supports Mexico’s Vinte in First-ever Investment in Housing Construction
IFC, a member of the World Bank Group, today signed an agreement with Vinte, an innovative home builder in Mexico, to increase the availability of high-quality and environmentally efficient housing for low- and middle-income people. This will be IFC’s first-ever investment in housing construction in the emerging markets it serves.
IFC’s investment of $22.5 million includes $10 million in equity, for 10.6 percent of Vinte’s shares, and a $12.5 million long-term revolving line of credit.
“IFC’s financing will support our business model and innovative research program. This will enable us to continue helping raise living standards for low- and middle-income families in Mexico,” said Sergio Leal, CEO of Vinte.
The rising demand for housing in Mexico, coupled with a steady growth in jobs, is contributing to a healthy home building sector. In five years, Vinte has capitalized on this market, transitioning from a small start-up to a successful midsize firm. The company specializes in an integrated approach to housing development that emphasizes community, availability of amenities such as Internet access and security systems, and post-sale services for property conservation and maintenance. Vinte practices green building, focusing on environmentally friendly systems—what it calls the “G7habitat” concept—that encourage more efficient use of water, gas, and light.
“This project aligns with our strategy to help expand the local home building market in Mexico. We are pleased to support Vinte, a leader in green building and affordable housing,” said Lars Thunell, IFC Executive Vice President and CEO, who signed the agreement during his first visit to the country since joining IFC.
Since 2001, IFC has invested $509 million to support the growth of Mexico’s housing finance sector and help expand access to mortgages for low-income families. As part of its strategy, IFC collaborated with the Sociedad Hipotecaria Federal to help develop a vibrant primary mortgage market, ensuring local currency financing to key originators such as Su Casita and Hipotecaria Nacional. IFC also helped develop a sound secondary mortgage market with clients including GMAC and Metrofinanciera.
The investment in Vinte is another phase of IFC’s strategy, which includes more involvement in the supply-side by supporting construction companies that target lower-income people.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.