IIC Consolidates Mexico'S Liquid Secondary Mortgage Market
08/09/2005Washington, DC - On August 9, 2005, the Inter-American Investment Corporation (IIC) approved a loan of up to US$20 million to Hipotecaria Su Casita (HSC), S.A. de C.V., Mexico's second largest mortgage SOFOL (Sociedad Financiera de Objeto Limitado). The project consists of a loan totaling US$100 million to Su Casita to be shared with FMO, the lead agent for the loan. The proceeds will be used to originate and/or acquire residential mortgage loans, chiefly for funding personal loans for low- and middle-income indidviduals.
The financing provided by the IIC will make it possible to build 2,600 to 3,200 new housing units with a price per unit of approximately US$30,000. The construction sector accounts for 16% of local industry, employs a significant portion of the workforce, and generates demand for goods and services related to the housing industry. HSC's core business is providing financing for building and purchasing housing units. Most of the loans that the company has granted so far are funded by FOVI, which is a trust set up by Mexico's federal government and administered by Sociedad Hipotecaria Federal.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Steven Reed/Victor Hugo Moscoso
Telephone: (202) 623-3981