Mexico's Homex to Sell $200 Million in Bonds to Fund Expansion
 Fabiola Moura & Jose Enrique Arrioja - Bloomberg
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Desarrolladora Homex SAB, Mexico's largest homebuilder, plans to raise as much as $200 million from a domestic or U.S. bond sale to increase its market share among middle class buyers and foreigners buying second homes, Chief Executive Officer Gerardo de Nicolas said.
The company also may expand into international markets including Brazil, India, China and Egypt, within the next three years, de Nicolas said in an interview in New York. These countries have a "historical deficit in housing" and access to financing for homebuyers, he said.
The Culiacan, Mexico-based homebuilder expects sales growth of 16 to 18 percent, to a total of 60,000 homes in 2008 from 51,400 last year, de Nicolas said. The company plans to sell the bonds by the end of the year to finance work on projects aimed at low-income and middle-class buyers.
"Despite being the biggest in Mexico, we still have only 7 percent of the market," said de Nicolas. "So we have great opportunities to continue growing."
Next year, Homex also will start work on developments in Cabo San Lucas, Vallarta and Cancun aimed at foreigners who want to own summer houses in Mexico, de Nicolas said.
To contact the reporter on this story: Fabiola Moura in New York at fdemoura(at)bloomberg.net |
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Business News | June 2008 
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