Vertice HF / EE

completed

The proposed project consists of a two-stage, long term revolving credit facility of up to MXP445 million ($40 million-equivalent) to Hipotecaria Vértice Sociedad Financiera de Objeto Limitado (Vértice or the company), to allow the company to provide additional mortgage financing to middle-and lower-income home buyers; as well as an equity investment of up to $6 million-equivalent to support the company’s growth strategy, with an option for IFC to purchase up to an additional $2 million-equivalent amount of Vértice’s equity.Some of the homes being financed with proceeds from the IFC credit line may involve dwellings that have been designed and constructed to include pre-determined energy-efficiency and/or natural resource-conservation features (such as solar-powered water-heaters). IFC’s Mexico housing finance strategy is currently in a transition stage, moving from a period of high investment in the primary and secondary mortgage segments towards a focus on funding mobilization, as well as targeted interventions involving specific niches and underserved areas of the country’s housing markets. The project represents an example of the latter component of this overall strategy, where IFC aims to partner with innovative and/or mid-sized entities in the sector in order to support the introduction of new types of affordable housing finance products.