MICROCAPITAL BRIEF: International Finance Corporation (IFC) Provides 50% Credit Guarantee to $8.4m Bond Issuance of Housing Developer Vinte Viviendas Integrales of Mexico, Anticipates 2,200 Jobs Created

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently announced a 50 percent credit guarantee to a bond issuance in the amount of MXN 100 million (USD 8.4 million) offered by Vinte Viviendas Integrales, a housing developer in Mexico. Sergio Leal, Vinte’s CEO said that, “IFC’s structured financing will help Vinte access a new type of institutional investor to help expand our portfolio of affordable-housing projects.” [1]

The guarantee provided by IFC is intended to enable Vinte to provide affordable broadband-connected housing options to 3,000 low- and lower-middle income families per year, thereby creating an estimated 2,200 job opportunities by 2013 [1].

There is no financial information available on Vinte.

By Medha Ravi, Research Associate

About the International Finance Corporation (IFC):
The International Finance Corporation (IFC) is a member of the World Bank Group that was created to support private sector development, mobilize private capital and provide advisory and risk mitigation services. IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reported net income of USD 1.75 billion, total assets of USD 61 billion and return on assets of 3.1 percent.

About Vinte Viviendas Integrales:
Established in 2001 in Mexico, Vinte Viviendas Integrales is a housing developer that targets medium- and low-income segments of the population. Vinte has signed agreements to promote technology in affordable housing with various companies such as Intel, Microsoft, INEA, INFONAVIT and CONACYT.

Sources and Additional Resources:

[1] International Finance Corporation (IFC) Press Release: “IFC to Help Build Affordable Housing, Create Jobs in Mexico”, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=2E674FF35D9DEC0E8525786F005707F2

MicroCapital.org story, April 6, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $100m in Sagicor Financial of Barbados to Develop Caribbean Insurance Industry, Including Through Microfinance Institutions (MFIs)”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-invests-100m-in-sagicor-financial-of-barbados-to-develop-caribbean-insurance-industry-including-through-microfinance-institutions-mfis/

MicroCapital.org story, March 31, 2011, “MicroCapital.org Brief: International Finance Corporation (IFC) and IFC African, Latin American and Caribbean Fund Make $75m Equity Investment in Insurance Sector Activities of Caribbean-Based Guardian Holdings Limited”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-20m-to-agricultural-cooperative-bank-of-armenia-acba-credit-agricole-bank-to-increase-lending-to-micro-small-and-medium-sized-ent/

MicroCapital’s Microfinance Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital’s Microfinance Universe Profile: Vinte Viviendas Integrales S A P I, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Vinte+Viviendas+Integrales

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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