Los Portales III: Promoting Sustainable Social Housing in Peru

Los Portales S.A. (“Los Portales”) is one of Peru’s leading companies in urban development and social housing. With a long track record in the sector, the company has established itself as a key player in reducing the housing deficit in the country, especially in middle- and low-income segments. This transaction marks Los Portales’ third collaboration with IDB Invest, which includes the issuance of a social bond in 2022.

The new project involves financing of up to the equivalent of US$50 million in Peruvian soles (PEN), structured in three tranches, two of which are directed to its subsidiary Los Portales Departamentos S.A.C. Tranche I consists of a Committed Working Capital Line of up to the equivalent of US$20 million in PEN, intended for land acquisition and development of apartment projects with green certification, focused on middle-income socioeconomic segments (B and C). Tranche II is a Committed Senior Loan of up to the equivalent of US$20 million in PEN for urban development and construction of social housing, primarily targeting middle- and low-income segments (C, D, and E). Finally, Tranche III is an Uncommitted Working Capital Line of up to the equivalent of US$10 million in PEN, with a similar use to Tranche I. This financing reinforces Los Portales’ commitment to sustainable and affordable housing access in Peru, contributing to improved quality of life for thousands of families.