Press Releases

IFC Supports the Construction Lending Operations of Hipotecaria Su Casita in Mexico

Adriana Gomez
Phone: (202) 458-5204

Fax:     (202) 974-4384


Washington DC, May 19, 2004 – The International Finance Corporation, the private sector arm of the World Bank Group, today signed an agreement to provide a secured financing of 180 million Mexican pesos ($16 million equivalent) to Hipotecaria Su Casita S.A. de C.V., a leading Mexican mortgage company.  The loan will be used to fund peso-denominated premortgage bridge loans to Mexican developers for the construction of low-income housing.  The housing will be sold under programs sponsored by Mexican public sector entities.

Peter Woicke,  IFC’s executive vice president, said, “Although IFC has an extended history supporting housing finance, this is our first project financing housing construction.  It addresses the supply side, rather than demand-related issues associated with providing liquidity for mortgage lending to home buyers. The project represents an important step in expanding IFC’s support for the housing finance value chain.” Mr. Woicke added, “This project is expected to  stimulate IFC’s lending for residential construction where similar financing can be implemented.”

Manuel Campos Spoor, Su Casita’s vice president, noted,  “Mexico faces a large housing deficit, estimated at around 4 million units.  One key to reducing this deficit is the availability of financing for construction. The federal housing agency has changed its policy and now focuses on granting guarantees as opposed to funding construction loans. Hence firms like ours have had to diversify their sources of funding. The IFC investment addresses this need.”

Su Casita is the second largest Sofol—a Sociedad Financiera de Objecto Limitado, or specialized non-bank mortgage company—in Mexico.   Established in 1994, the company’s primary business is origination and servicing of residential mortgages and construction loans.  Su Casita has  offices throughout Mexico and has recently begun operating in the United States. Su Casita’s construction loans to housing developers provide a platform for its mortgage loan business.  As of March 2004, Su Casita’s assets and capital stood at about $1.7 billion and $107 million equivalent, respectively.

This investment is part of IFC’s strategic relationship with Su Casita.  IFC initially made an equity investment and provided funding for the company’s first pilot mortgage bond issue. In this new investment, IFC will assist Su Casita in sustaining its construction bridge loan program.   IFC has also facilitated a relationship between Su Casita and DEG, the German development financier, which will provide funding to of up to 12 million Euros equivalent along the lines of IFC’s investment.

IFC's mission ( is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.  From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.

Contact in Su Casita:
Diana Miller