| | |  Business News | September 2008 
IFC Loan to Mexico's Vertice Will Support Energy-Efficient Housing Finance
 Media-Newswire
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Washington, D.C. - IFC, a member of the World Bank Group, today announced that it will provide long-term local-currency funding to Hipotecaria Vertice, a midsize housing finance company in Mexico, to enable it to provide energy-efficient housing solutions for low- and middle-income home buyers.
IFC is providing Vertice with a revolving loan equivalent to $25 million with the potential to increase the amount by $15 million equivalent in future. The loan will be used to support mortgage origination activities and to provide mortgages to people buying homes that incorporate energy efficiency and natural-resource conservation features.
Samuel Suchowiecky, CEO of Vertice, said, "Financing environmentally sustainable home building is an important priority for the Mexican government, and a promising commercial opportunity for firms such as Vertice. This is the first in a series of innovative mortgage products designed to respond to clients’ needs and contribute to better quality of life. We are delighted to have IFC’s endorsement and support for this important initiative."
Atul Mehta, IFC Director for Latin America and the Caribbean, said, "IFC’s new financing for Vertice, which follows an equity investment earlier this year, is consistent with our strategy to support the availability of housing in Mexico for middle- and low-income segments of the society. Vertice’s innovative approach to incorporate energy efficiency in housing construction is helping set a model in the housing sector in the country,and is being replicated by other players. We look forward to continue strengthening our partnership with Vertice."
Vertice has pioneered a "green kit" for home builders looking to implement resource conservation measures. Houses that incorporate the kit are eligible for Vertice’s green mortgages and supported by IFC’s loan. Vertice launched its green mortgage product, or "Casa Verde", in August and has provided such mortgages in three locations in Mexico: Pachuca Hildalgo, Queretaro and Tijuana, and Baja California.
IFC invested $6 million in a 15 percent equity stake in Vertice in April 2008. Altogether, IFC has invested $531 million in Mexico’s housing finance sector, helping expand access to mortgages for low- and middle-income families. As part of its housing finance strategy in the country, IFC has collaborated closely with Sociedad Hipotecaria Federal to help develop a vibrant primary and secondary mortgage market.
About IFC: IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
Since Mexico became a member in 1956, IFC has provided $6 billion to the country’s private sector, including $2.2 billion in syndicated loans. IFC’s country strategy for Mexico focuses on enhancing competitiveness of the private sector, deepening the financial sector by introducing specialized products and markets, supporting infrastructure development and investment in areas newly opened to private sector participation, and promoting sustainable environmental and social development and good corporate governance. |
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