Washington D.C./ Mexico City, October
4, 2012—IFC, a member of the World Bank Group, signed an agreement
to provide financing of up to $105 million to Mexican homebuilder Urbi
Desarrollos Urbanos to build energy-efficient homes for low-income people
across the country. IFC is providing $50 million and through the IFC-Canada
Climate Change Program, Canada is contributing an additional $20 million
to help expand sustainable housing in Mexico, cut energy costs, and fight
climate change. IFC is planning to raise an additional $35 million through
a syndicated loan from international commercial banks.
IFC’s financing will enable Urbi, one
of Mexico’s largest homebuilders, to construct nearly 36,000 affordable
“green” homes annually by 2017. It will also support about 4,500 jobs
every year. The housing program will help address Mexico’s current housing
deficit of 9 million units, most of which are in the low-income segment
of the population. The government of Canada’s instrumental contribution
helps make the installation of solar photovoltaic technology possible.
“IFC’s support will strengthen Urbi’s
innovative approach and business strategy to continue developing sustainable
housing models,” said Cuauhtémoc Pérez, Urbi's CEO. “It shows IFC’s
trust in Urbi and we expect this to be the beginning of a long-term partnership
in which Urbi will benefit from IFC’s expertise in sustainability.”
The timing of the project is critical
because demand for homes in Mexico is expected to grow to 11 million in
the next 20 years—with 70 percent coming from low-income families. The
new homes will have modern technologies to ensure energy efficiency. Some
will also generate electricity for residential use through solar-power
“The global challenge of climate change
requires a global solution, and Canada is proud to support environmental
efforts such as these,” said the Honorable Peter Kent, Canada’s Environment
Oscar Chemerinski, IFC Director for
manufacturing, agribusiness, and services in Latin America and the Caribbean,
and Sub-Saharan Africa, said: “Our support to Urbi is consistent with
IFC’s focus on strengthening business models that help mitigate or adapt
to climate change, while improving the quality of life of people in developing
countries. Urbi is an important player in the housing market in Mexico,
and its success will have a broader impact by demonstrating the viability
of sustainable housing to home buyers and other developers in Mexico and
IFC’s investment is aligned with the
Mexican government’s National Development Plan, which recognizes and supports
the instrumental role of low-income housing in economic and social development.
The investment is also consistent with the government’s new programs that
promote the construction of green housing.
About the IFC-Canada Climate Change
The IFC-Canada Climate Change Program
promotes private sector financing for clean energy projects. Canada’s
financing to IFC for this program is part of its overall fast-start financing
contribution for 2010-2011. Under the Copenhagen Accord, developed countries
committed to provide fast-start financing of almost $30 billion for 2010-2012
to support climate-change mitigation and adaptation in developing countries.
As part of Canada’s commitment to support climate change action in developing
countries, Canada is contributing $1.2 billion Canadian dollars to new
and additional climate-change financing over three years (fiscals 2010-2013).
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.