IIC Invests MX$106.5 Million in Mexican Housing Developer VINTE
Equity investment in Mexican pesos will provide sustainable housing for low- and middle-income families
Washington, D.C., July 9, 2013 — The Inter-American Investment Corporation (IIC) will invest up to MX$106.5 million in VINTE Viviendas Integrales S.A.P.I. de C.V., acquiring 5% of the housing developer’s common shares.
VINTE will use the funds from the investment to support the opening of new housing markets and developments in Mexico, including the purchase of land for the development, promotion, design, construction, and marketing of social-interest and middle-income housing projects in the country.
“With this local-currency operation, the company will strengthen its equity structure to secure greater market penetration and launch new operations in other Mexican states,” noted Rodrigo Navas, IIC lead investment officer in charge of the operation. “It will also engender well-being for low- and middle-income Mexican families by developing sustainable communities and reducing the housing shortage in Mexico.”
“The IIC investment will help broaden VINTE's institutional investor base, improve our corporate governance, and replicate our business model with a new partner that will contribute to the sustainable growth of our operations,” stated Sergio Leal, VINTE's chief executive officer.
VINTE finance director Domingo Valdés added, “We consider this investment a key step in the strategic growth of the company, not only because the IIC is one of the soundest financial insititutions in the world, but because of its firm commitment to supporting inclusive businesses that help improve the quality of life for low- and middle-income families in Mexico.”
VINTE develops, promotes, designs, builds, and markets social-interest and middle-income housing in several Mexican states. To date, it has built over 14,200 houses and received several national and international awards in recognition of its sustainable, innovative business model, among them the National Housing Award (including Best Project Implementation and Best Sustainable Housing Development) and won the G20 Challenge on Inclusive Business Innovation.
This is the IIC’s second operation with VINTE. In 2012 an agreement was signed for a MX$50 million credit line for the development of sustainable housing projects in Mexico.
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 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 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.