IIC Grants Loan of up to MX$40 Million for Housing in Mexico
Proceeds will finance land purchases for popular social interest and middle-income housing
Mexico City, Mexico, June 11, 2013 — The Inter-American Investment Corporation (IIC) has approved a loan of up to MX$40 million (approximately US$3.3 million) to Promotora Procsa S.A.P.I. de C.V., La Casa Espacio Inmobiliario S.A. de C.V., and Casas Procsa S.A. de C.V. (Procsa). Procsa will use the proceeds of the loan to purchase land for the construction of social interest and middle-income housing in Mexico.
“The IIC financing will support the housing sector and generate well-being for low and middle-income families, developing sustainable, environmentally friendly communities,” noted Rodrigo Navas, IIC lead investment officer in charge of the operation. “Procsa will also broaden its sources of funding and improve its access to the long-term local currency financing it needs to develop its housing projects.”
“This long-term loan will enable us to grow our land banking portfolio in urban reconversion areas currently in disuse or underutilized and suitable for the construction of sustainable apartment buildings, in keeping with the national housing plan,” stated Lydia Álvarez, general manager of Procsa.
Luis Porragas, Procsa’s director of operations, added, “The support of an institution as prestigious as the IIC will buttress our growth strategy for the next five years.”
Procsa is a business group that develops, builds, and sells popular social interest and middle-income housing in Mexico. With over 50 years’ experience in the market, it has provided over 15,000 families with housing solutions since its founding. Procsa’s main housing projects are located in the State of Mexico, Mexico City, and San Luis Potosí, and it expects to build upwards of 2,600 homes by 2018.
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. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Rodrigo Navas
Telephone: +1(202) 623-3926 in Washington, D.C.