Su Casita WHL II

completed

Hipotecaria Su Casita, S.A. de C.V. (HSC or Su Casita) is a Sofol, or a special-purpose financial company, whose main function is to extend mortgage loans to low-income individuals and to provide construction financing to developers of low-income housing. Su Casita was established in 1994. It has 114 braches in Mexico. The company is first in market share, controlling approximately 21% of the market served by housing Sofoles, based on total loan portfolio. As of December 31, 2005, it had total assets of $2.4 billion equivalent and shareholders’ equity of $182 million equivalent. Su Casita is rated A3.mx (national scale issuer rating), and Ba3 (global scale local currency issuer rating) by Moody’s, and A- mx by Standard and Poor’s (S&P). It has a servicer rating of SQ2 from Moody’s - the rating ranges from SQ1(strong) to SQ5 (weak), and Excellent by S&P.Su Casita’s business growth has been robust and the company expects this growth to be maintained, which calls for increased funding over the next three years. In anticipation of these needs, IFC is considering firming up a package of up to $240 million to be able to expedite future requests for funding from the company.Within this package, a first loan of $70 million, a warehouse line of credit, will finance the origination of eligible mortgage loans, as defined by IFC, in the low- to middle-income segment of the Mexican housing market, and provide a steady pipeline of mortgage loans to support HSC’s on-going securitization program. This loan will also enable Su Casita to free up its balance sheet of assets so securitized.