Vinte, a Mexican local private company, was founded in 2001 by a group of professionals with more than 15 years of experience in the design, construction and promotion of low income housing developments. The company’s CEO, Architect Sergio Leal Aguirre, together with a group of selected investors and executives with expertise in key areas within the company, have focus their strategy on developing high quality houses that additionally allow low and mid income families to have access to technology and to the benefits of innovation.

Vinte was constituted as the holding company of four operating companies:

- Promotora de Viviendas Integrales, engaged in the promotion of the developments;
- Edificaciones e Ingenieria del Centro, engaged in the urbanization and construction activities;
- Urbanizaciones Inmobiliarias del Centro, engaged in the design of new developments, as well as in the research and development of new innovative products for housing; and
- Vinte, Administración, Diseño y Consultoría, engaged in human resources management.

With less than 5 years of operation, Vinte has become one of the most profitable and fastest growing companies in the housing sector. The company has sold a total of 2,600 homes, from which 65% are for the low income segment. The company was created with the strategy to differentiate itself from other affordable housing companies by providing a value added product to low income customers, which usually do not have alternatives beyond the very basic standard home.

Throughout their in-house G7Habitat concept, the company includes a better designed home in an integral development with better infrastructure demanded by a community (such as schools, recreational, sports and commercial areas), and other additional services not offered before to the social housing market, such as a computer per house with internet broad band access, a community portal that encourages community integration, security, post sale services of conservation and maintenance, digital measuring system for gas, light and water levels per home, among other services.

To continue strengthening its business model, Vinte has put in place an aggressive R&D plan that intents to constantly provide higher living standards for low and mid income families in Mexico.

The proposed IFC long term revolving facility will be for up to $12.5 million that will be complemented with an IFC equity investment of up to $5.0 million. The revolving facility will be used to support the development of housing projects to be built by the company in Mexico. The equity investment will help finance long term investment needs.

22.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.50
Equity	10.0

* These investment figures are indicative

The company is domiciled in Tecamac, Estado de Mexico, Mexico. Construction activity supported by the IFC Revolving Facility could be anywhere in Mexico.

IFC has been successfully involved in the evolution of the Housing Finance sector in Mexico, by covering the housing finance chain in full: from the supply side to the mortgage origination and secondary markets development. This, together with the environment of macroeconomic stability of the country during the last ten years, and the Government’s agenda to prioritize the housing sector, have boosted the demand for housing from the low and middle income population.

By providing direct financing to the housing developers, IFC will be complementing its existing strategy in Mexico, by further developing the housing sector from the final product supply side of the chain. The project will contribute to the development of supply of housing in Mexico to match the already originated supply of mortgage loans.

The IFC has selected Vinte as the first developer worldwide to be granted with direct funding given the potential impact on the company’s growth, and to help it implement new initiatives that would improve low and mid income families’ way of living.

The proposed facility can be replicated with several other second tier housing developers, and can therefore have a demonstration effect. The facility will contribute:

- to facilitate increased competition in the housing sector by promoting the growth of mid-sized developers that currently face substantial financing limitations compared to a limited number of large publicly-traded home builders;
- to promote the development of more efficient financing products to the sector by SOFOLES and commercial banks;
- to encourage improvements from the eco efficiency perspective, which could generate environmental and financial benefits for the developer and the house owner.

IFC’s involvement in the project is expected to contribute in terms of:

- Promoting the mobilization of corporate financing to a second tier housing developer, at a time when the housing sector is consolidating and there is a lack of corporate financing for this tier of companies.
- Without IFC’s involvement and committed financing, the company may be more restricted in the number of social housing projects can enter into.
- Help the company have access to new worldwide environmental and innovative products that could be promptly implemented in their houses for the benefit of the company and its customers.
- Helping the company implement good corporate governance principles, such governance standards will be essential to achieve the company’s growth strategy, and to attract other lenders and investors.

This is a Category B project according to IFC’s Environmental and Social Review Procedure as the potential impacts of the project are readily manageable with recognized mitigation measures. Furthermore, the company consistently applies appropriate energy efficiency and resource management measures to improve the sustainability of the project.

While all Performance Standards (PS)are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions.
- PS3: Pollution Prevention and Abatement.
- PS4: Community Health, Safety and Security.
- PS5: Land Acquisition and Involuntary Resettlement
- PS8: Cultural Property
- PS6: Biodiversity Conservation and Sustainable Natural Resource Management.

The below PS does not apply as by law housing developments cannot be located in protected areas or areas with natural habitats.

- PS7: Indigenous Peoples (IPs)

IPs would not be affected by Vinte developments unless they become involved in land sales. Development area is in semi-urban location. Land acquisition by Vinte is done in a responsible manner on a willing-buyer-willing-seller basis, which would not impinge on IPs rights.

Environmental, Health and Safety General Guidelines (April 30, 2007).