IDB Invest, a member of the Inter-American Development Bank (IDB) Group, recently agreed to lend MXN 1.5 billion (USD 75 million) to Mexico-based housing developer Inmobiliaria Ruba to expand access to low- and middle-income housing in Mexico. Along with the funding, IDB Invest will assist Ruba in: (1) becoming less impactful on the environment; and (2) strengthening its relationships with smaller suppliers by providing them with short-term finance via “reverse factoring.” One third of the funding from IDB Invest is for up-front use to benefit these micro-, small and medium-sized suppliers; the remainder is a seven-year line of credit.
Founded in 1980 in Ciudad Juárez, Chihuahua, Ruba employs 1,342 individuals in 17 cities as of 2022. Since its inception, it has completed 225,000 housing units.
The goal of IDB Invest is to “finance sustainable companies and projects to achieve financial results and maximize economic, social and environmental development” across Latin America and the Caribbean. The institution is owned by its 47 member countries and holds a portfolio of USD 14 billion as of 2022.
Established in 1959, IDB Group is a multilateral institution working to promote “environmentally friendly” economic development via improved health, education and infrastructure in Latin America and the Caribbean. It reports having issued USD 14 billion in loans and grants during 2021, ending the year with assets of USD 152 billion.
By Sheen Gupta, Research Associate
Sources and Additional Resources
IDB Invest press release
https://www.idbinvest.org/en/news-media/idb-invest-ruba-join-forces-promote-access-affordable-housing-mexico
Ruba homepage
https://ruba.com.mx
IDB Invest homepage
https://idbinvest.org
Previous MicroCapital article on IDB Invest
https://www.microcapital.org/microcapital-brief-idb-invest-lends-15m-to-cordada-to-bolster-lenders-msmes-in-chile-mexico-peru/
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