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IFC’s Partial-Credit Guarantee to VINTE’s Second Bond Issue Supports Affordable Housing in Mexico


In Washington, D.C:
Adriana Gomez, IFC

Phone: +1 (202) 458 5204

E-mail:
Agomez@ifc.org

Ludwina Joseph, IFC

Phone: +1 (202) 473 7700

E-mail:
LJoseph@ifc.org

In Mexico City:

Domingo Valdés, CFO, Vinte
Phone: +52 (55) 91 71 15 27
E-mail:
domingo.valdes@realparaiso.com


Washington, D.C., July 12, 2011—IFC, a member of the World Bank Group, is providing a 50 percent partial credit guarantee for a 100-million peso (about US$8.4 million) bond issue by Mexico’s VINTE Viviendas Integrales.  The transaction will support the company’s growth strategy to build green and affordable housing for low- and middle-income families throughout the country.  

IFC’s credit enhancement for the three-year bond received a local rating of Aa3.mx by Moody’s Investors Service and HR AA- by HR Ratings.

VINTE’s bond program creates a presence for the company in the capital debt markets while tapping into longer term funding.  The company’s second bond issue builds on the success of its first-ever bond issue in March 2011, also credit enhanced by IFC.  Both bonds are issued under the company’s new bond program for an authorized amount of up to 1000 million pesos (US$84 million).  


VINTE, an IFC client since 2008, is a leader in sustainable housing developments for low- and lower-middle income families in Mexico.  It has sold more than 8,500 homes in the last six years.  VINTE’s home prices make them attractive to young working adults, many of whom are first-time home buyers who grew up in Mexico City’s informal housing settlements with marginal access to clean water, electricity, sanitation, roads, schools, and parks.  In addition to supporting VINTE’s first bond issue with partial credit guarantees, IFC also is a lender to the company and an equity investor.


“We are very pleased with the strong demand from investors for both bond issues by VINTE,” said Domingo Valdés, CFO for VINTE.  “These milestone transactions open the way for a broader and deeper investor base that will help the future growth of the company.”  Sergio Leal, VINTE’s CEO added, “This bond issue again demonstrates IFC’s ability to support our successful and sustainable business model.”

Lee Meddin, IFC Director for Structured and Securitized Products, said, “VINTE is an excellent candidate for IFC’s credit enhancement as evident in the bond ratings which enabled the firm to place a second successful issue in the Mexican market. Transactions such as these are part of IFC’s strategy to leverage its credit and enable clients to mobilize local currency in domestic bond markets.”


Vinte is a leader in sustainable housing developments for low and lower-middle income families in Mexico.  The company has become a model in Mexico for strong financial performance and technologically innovative housing products, and IFC is committed to assisting successful, sustainability-focused companies like Vinte achieve their growth plans.


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org.

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