IFC Invests in Mixta Africa to Help Increase Affordable Housing
In Washington, D.C.:
Carmen Powell
Tel: 202 473 4982
Email : cpowell@ifc.org
In Cairo:
Riham Mustafa
Phone: +(20) 2 2461 9140 Ext. 306
E-mail: rmustafa@ifc.org
Madrid, Spain, July 3, 2008—IFC,
a member of the World Bank Group, has invested in the shares of Mixta Africa,
a real estate company operating in Africa. The investment will help relieve
housing shortages across the continent, addressing the needs of about 12,000
families by providing affordable housing to low- to middle-income people
in Algeria, Egypt, Mauritania, Morocco, Senegal, and Tunisia.
IFC has invested €50 million in the company through an eight-year loan
and equity financing package.This investment increases the financial resources
and growth capacity of a company that is operating in a very capital-intensive
industry.
This investment increases the financial resources of a company operating
in a very capital-intensive industry, thus reinforcing its growth capacity.
“IFC’s participation is a recognition of our sustainable business model
internationally. It shows trust in our growth strategy, our solvency, and
operational capacity,” said Josep Piqué, Mixta Africa’s Chairman. “IFC’s
decision to support the Mixta Africa Project shows that our business model
fits well with its rigorous standards.”
“We are very pleased to partner with Mixta Africa in its efforts to expand
operations. Property investments are important to sustainable economic
growth in emerging markets, and form a key part of IFC’s strategy for
increasing housing availability to low-income populations,” said Sergio
Pimenta, IFC Senior Manager for Global Manufacturing and Services.
With this new investment, Mixta Africa now has the support of two leading
international financial institutions, including Morgan Stanley, which holds
18 percent shares of the company. Fundación Renta, the main shareholder
owns, 28.5 percent, while Renta Corporación owns 16.5 percent. The remaining
27 percent is held by several private shareholders.
Incorporated in 2005, Mixta Africa began operations in Morocco and has
expanded to Senegal; it plans to enter Algeria, Egypt, Mauritania, and
Tunisia in the near future. All of these countries are experiencing
rapid economic growth, and the company is developing several projects to
meet their high demand for housing. Since 2005, Mixta Africa has executed
investments worth €155 million.
About IFC
IFC, a member of the World Bank Group fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people should have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
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