•Transaction of up to $50 million aims to expand supply of formal housing and developed land

WASHINGTON – 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 urbanization 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 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 4 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.

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en. 

About Los Portales

Los Portales is a company with Peruvian and Mexican capital that operates four business units: Urban Development, Social Housing, Apartments, and Hotels. Its main objectives are the construction of decent and affordable housing for low-income populations and the provision of direct credit to its clients for property purchases.