Mexico City, Mexico, August 22, 2023. The International Finance Corporation (IFC), a member of the World Bank, and Internacional de Inversiones (IDEI), a developer of sustainable real estate projects, announced the issuance of a green bond for 800 million pesos (around US$45 million dollars) in order to promote sustainable construction in Mexico.
The bond will contribute to the development of green financing for construction in Mexico, while strengthening the country's climate financing market by promoting the broader adoption of certified sustainable construction and green financing standards. The issuance, carried out in two series (500 and 300 million pesos, respectively), is backed by IFC with a stock market guarantee for 50 percent of the amount issued.
Alberto de la Garza Evia, President of the IDEI Council, highlighted: "As pioneers in the construction of properties with green certifications, at IDEI we are convinced that through our sustainability strategy we will continue to generate a positive impact for current and future generations. This historic green bond endorses our commitment to make responsible investments and to continue building a better Mexico."
Juan Gonzalo Flores, Country Manager of IFC Mexico, pointed out: "Improving energy efficiency in residential homes is essential in the fight against climate change. The situation is particularly pressing for Mexico, where power systems outside of large cities are mostly non-renewable. In addition to reducing the housing deficit, a problem aggravated during the COVID-19 pandemic, this bond will help reduce greenhouse gas emissions in the country."
The resources obtained will be used to finance the construction of additional square meters in the development of properties certified by EDGE (Excellence in Design for Greater Efficiencies). An innovation by IFC, EDGE helps real estate developers certify their buildings as green in a fast, easy and affordable way. EDGE offers a menu of solutions to reduce energy, water and embedded energy in building materials by at least 20%, which is the minimum standard for certification.
According to the United Nations, by 2030 there will be 80 billion new square meters built, which is equivalent to 60% of the area that is currently built. IFC estimates that this represents a USD 4.2 billion investment opportunity in green buildings for Latin America. This underlines the strategic importance of betting on sustainable construction and highlights the potential for growth and economic development that it represents for the region and Mexico.
About IDEI
IDEI is considered one of the most remarkable companies in the North of México. With 50 years of history, its purpose is to build a better Mexico. Its Mission-Vision: create sustainable, unique and avant-garde real estate projects that improve people's quality of life. IDEI is focused on Monterrey and its Metropolitan area, which has distinguished itself as the real estate market with the best economic performance in the country in recent years. This has allowed us to maintain sustainable growth, maximize returns for our investors and shareholders and generate a positive impact in the community.
IDEI has successfully established four business segments: vertical housing segment, horizontal housing segment -both focused on the middle, residential and residential plus strata, where we have built more than 15,000 homes-, office segment (with more than 270,000 m2 built) and commerce segment (with more than 205 thousand m2) of offices. The consolidation of these segments has allowed IDEI to diversify its products as a risk mitigator and focus its capital on the segments that have the greatest growth projection through the different economic cycles.
Our Sustainability Strategy has become the DNA of our company and has been a fundamental pillar in our growth. To date we have built more than 200 thousand square meters with green certifications have incorporated ESG criteria in all of our developments. Additionally, we have the goal of building 400 thousand m2 with green certifications in the next 5 years.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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