WASHINGTON, USA – IDB Invest will provide financing of up to $50 million to Los Portales, one of Peru’s leading social and urban housing developers, to expand the supply of formal housing and developed land, facilitating access to quality housing solutions for low- and middle-income families, especially in Lima and other locations with high demand and limited supply.
The financing, which will be provided in local currency, will go to Los Portales S.A., a company dedicated to the urbanisation of lots with access to basic services and the development of formal housing, and to its subsidiary Los Portales Departamentos S.A.C., which focuses on the construction of green-certified buildings and social housing projects. The initiative will help reduce the housing deficit—which affects more than two million households—improve life quality for thousands of families, and promote planned and sustainable urban development.
The operation will be structured in three tranches – a committed revolving working capital line of up to the equivalent of $20 million in Peruvian soles for Los Portales Departamentos S.A.C, with a term of up to 4 four years; a senior loan of up to the equivalent of $20 million in soles for Los Portales S.A., with a term of up to 12 years; and an uncommitted revolving working capital line of up to the equivalent $10 million in soles for Los Portales Departamentos S.A.C., with a term of up to four years.
This flexible structure allows the group to serve its two business models as well as the different stages of its housing and urban development projects. This is the first time that IDB Invest has granted a committed working capital line for Peru’s real estate sector, with a multi-project modality, longer terms, and guaranteed resources, which facilitates operational management that is more aligned with the sector’s cycles.
IDB Invest will also provide advice to strengthen environmental and social management in projects and improve community safety and cohesion, among other things.
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