IFC Invests in Mixta Africa to Help Increase Affordable Housing
Madrid, Spain, July 2008—IFC, a member of the World Bank Group, has invested in the shares of Mixta Africa, a real estate company operating in Africa. The investment will help relieve housing shortages across the continent, addressing the needs of about 12,000 families by providing affordable housing to low- to middle-income people in Algeria, Egypt, Mauritania, Morocco, Senegal, and Tunisia.
IFC has invested €50 million in the company through an eight-year loan and equity financing package.This investment increases the financial resources and growth capacity of a company that is operating in a very capital-intensive industry.
This investment increases the financial resources of a company operating in a very capital-intensive industry, thus reinforcing its growth capacity.
“IFC’s participation is a recognition of our sustainable business model internationally. It shows trust in our growth strategy, our solvency, and operational capacity,” said Josep Piqué, Mixta Africa’s Chairman. “IFC’s decision to support the Mixta Africa Project shows that our business model fits well with its rigorous standards.”
“We are very pleased to partner with Mixta Africa in its efforts to expand operations. Property investments are important to sustainable economic growth in emerging markets, and form a key part of IFC’s strategy for increasing housing availability to low-income populations,” said Sergio Pimenta, IFC Senior Manager for Global Manufacturing and Services.
With this new investment, Mixta Africa now has the support of two leading international financial institutions, including Morgan Stanley, which holds 18 percent shares of the company. Fundación Renta, the main shareholder owns, 28.5 percent, while Renta Corporación owns 16.5 percent. The remaining 27 percent is held by several private shareholders.
Incorporated in 2005, Mixta Africa began operations in Morocco and has expanded to Senegal; it plans to enter Algeria, Egypt, Mauritania, and Tunisia in the near future. All of these countries are experiencing rapid economic growth, and the company is developing several projects to meet their high demand for housing. Since 2005, Mixta Africa has executed investments worth €155 million.
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