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| Project sponsor and major shareholders of project company |
| The project sponsor is Hipotecaria Su Casita. HSC is wholly owned by Grupo Su Casita. Grupo Su Casita, in turn, is majority owned by Caja Madrid of Spain with a 25% stake, Pulte Mortgage Corporation (the second-largest U.S. homebuilder), Mexican homebuilders (including Corporacion GEO, one of Mexico’s largest homebuilders), individual shareholders, and IFC. |
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| Total project cost and proposed IFC investment |
| The proposed IFC investment is a Mexican peso-denominated revolving line of credit, for IFC’s own account, of $50 million equivalent, secured by a pool of mortgages that will satisfy IFC-specified criteria. The mortgages will be held by a trust separate from the borrower. |
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| Location of project and description of site |
| The location of the project is at the headquarters of Hipotecaria Su Casita in Mexico City, Mexico. |
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| Description of company and purpose of project |
Hipotecaria Su Casita, S.A. de C.V. (HSC or Su Casita) is Mexico’s second largest Sofol (specialized mortgage lending institution) by market share. Its main function is to extend mortgage loans to low-income individuals under the auspices of SHF (Sociedad Hipotecaria Federal) financing programs, and to provide construction financing to developers of low-income housing. It controls approximately 18% of the mortgage market served by Sofoles, based on total loan portfolio. It has 107 offices in Mexico. Su Casita was established in 1994. As of December 2004, it had total assets of $1.85 billion equivalent and shareholders’ equity of $127 million equivalent. It 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.
HSC has grown at a rapid pace since its inception a decade ago, given the high demand for low-income housing in Mexico. To enable it to continue to grow in step with the market and to diversify its funding source from the SHF, its strategy is to maintain its ongoing securitization program, thus enabling it to free up its balance sheet of assets so securitized. The purpose of IFC’s loan is to support HSC in this securitization program. IFC’s loan will be collateralized by a pool of mortgages that will satisfy IFC-stated criteria and be held in a Security Trust. This loan will thus readily enable Su Casita to support its securitization from a pool of high-quality assets that will already be in the Trust. |
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| Environmental and social issues - Category C |
This is a category C project according to IFC's environmental and social review procedure. The nature of HSC's portfolio (low- to middle-income residential mortgage loans) means that there will be minimal environmental impacts associated this investment. Therefore, no further environmental or social analysis is required.
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| To contact the project company, please write to: |
Mr. Manuel Campos, Vice President
Av. San Jeronimo No. 478, 4to. Piso
Col. Jardines del Pedregal
México, D.F. 01900
Phone: 52-55-5481-8206
Fax: 52-55-5481-8353 |