Su Casita CLF

completed

The proposed project aims to support the development of the Mexican housing sector by providing funding to sustain the bridge loan program of Hipotecaria Su Casita (HSC or the company), a non-bank housing finance company (Sofol). IFC and the German development financier, Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) are proposing to extend secured loans of up to $30 million equivalent (up to MXN180 million by IFC and up to EUR12 million by DEG) to HSC. The proceeds of the loans will be used to fund peso-denominated bridge loans to Mexican developers for the construction of low-income housing to be sold under programs sponsored by public sector entities such as Sociedad Hipotecaria Federal (SHF), INFONAVIT and FOVITSSE. IFC will also provide a currency swap to the company for the DEG financing.