The International Finance Corporation, the private sector arm of the World Bank Group, has signed an agreement to provide a Ps553mn revolving line of credit (US$50mn) to Hipotecaria Su Casita, a specialised financial intermediary in Mexico.
IFC’s financing will help Su Casita fund low to middle-income mortgage loans, diversify its funding sources, and maintain its ongoing securitisation programme in the domestic capital markets.
IFC’s investment underlines its strategy to develop the housing sector in Mexico by providing funding to key players and to contribute to the development of the country’s capital markets.
Recognising the need for local currency financing so that companies can match the currency of borrowings to their revenues, to date IFC has committed the equivalent of US$300mn in peso-denominated loans and other financing to Mexican housing companies.
Su Casita is Mexico’s second-largest specialised mortgage lending institution, or sofol, based on market share of loans. Its main function is to extend mortgage loans to lower-income individuals under the auspices of Mexico’s federal housing finance institution, Sociedad Hipotecaria Federal (SHF) financing programmes, as well as to provide construction financing to developers of low-income housing.
Jyrki Koskelo, director of IFC’s global financial markets department, says: “This financing will support Su Casita’s continuing efforts to diversify its funding base for primary mortgage market activities, but more specifically, help it to increase access for housing finance for both low and middle income market segments, and thus strengthen its strategic focus to reach previously underserved sectors in Mexico.”