IIC Approves a Loan in Mexican Pesos to Support the Development of Mexico’s Housing Sector
The proceeds will fund the development of a housing project for more than 800 middle-income Mexican families
Washington, D.C., March 25, 2015 – The Inter-American Investment Corporation (IIC) approved a loan of up to MX$52 million to Residencial Atlas S. de R.L. de C.V. (Casas Atlas) to acquire a land bank to build a housing development in Mexico and the basic public services infrastructure for the development.
In addition to the loan, the IIC will support the company with advisory services to design and implement an environmental and social management system. The goal of this system is to increase the company’s positive impact on the community and control the effects that Casas Atlas’ operations could have on the environment. Environmentally and socially responsible home construction is key for the sustainable growth of the sector and for the orderly development of urban areas in Mexico.
“This credit line from the IIC marks an important milestone in the diversification of our funding sources in support of our growth strategy. It is gratifying to have such a prestigious organization endorse our business model and sustainability credentials. Dealing with the IIC has contributed substantially to the strengthening of our environmental and social risk management processes,” said Guven Giray, chairman of the board of directors of Casas Atlas.
“With this operation, the IIC supports the housing sector, one of the key drivers of the Mexican economy, and promotes housing development under best environmental, social, and labor practices, all in harmony with the social environment,” said Carlos Martínez Gama, the IIC investment officer in charge of the operation. “This project is also expected to create more than 400 jobs during the construction period, mainly in Casas Atlas’ SME contractors. In the long term, the project will benefit the Mexican families that will live in the housing development.”
Residencial Atlas S. de R.L. de C.V. develops housing projects in Mexico, most of them classified as aimed at the middle-income market. It was founded in 2002 in Torreón, Coahuila, in the north of the country. It currently has 19 projects in the states of Querétaro, Aguascalientes, Nuevo León, Baja California Sur, Coahuila, and Chihuahua, as well as in Mexico City. Its home designs include the use of eco-technologies for saving energy and water, while its housing developments feature urban spaces that promote a sense of community and good relations between neighbors.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline their management processes and provide them with funding in the form of equity investments, loans, and guarantees, as well as technical assistance, advisory services, and innovative knowledge products. In 2013, the IIC approved 71 operations totaling $415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of $5.2 billion. An additional $3.0 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC’s activities, visit www.iic.org.
Contact: Carlos Martínez Gama
Telephone: +52 (55) 5141-2492 in Mexico City, Mexico