Bamboo Finance Invests R$7 Million (US$3.6M) in Bille, To Build 1200 Affordable Houses in Sao Paulo State

Friday, July 20, 2012

Geneva, Switzerland, July 19, 2012 – Bamboo Finance, a leading impact investment firm with a pioneering history of funding growth stage business models that drive economic viability in low-income markets, has invested R$7M (US$3.6M) in Bille, a Special Purpose Enterprise (SPE) created by Crinale, a Brazilian housing developer, for building and selling 1,200 houses in the interior of Sao Paulo State. Bille uses an innovative and efficient business model to build and sell affordable standard houses, reducing the time from development to sale by more than 50%. To date, Crinale has completed six affordable housing projects in five towns, delivering more than 1,100 low-income houses in the interior State of Sao Paulo.

“The emphasis on increasing the speed of financing along with the efficiency of Crinale’s operating model and ability to secure access to quality land provides a scalable solution to a massive social and economic problem,” said Natalia Mouhapé, Investment Manager, Bamboo Finance.“

It is this combination of operating and distribution efficiency without compromising quality that attracted us to Crinale. The team has demonstrated that it understands the needs of the market and the “Minha Casa, Minha Vida” government program, and is committed to not only providing quality housing, but also creating jobs for the communities it serves. We invest in companies that have the ability to stimulate the viability of local markets, and we see housing as a critical component to driving economic growth, and Crinale has designed a solution that will benefit all of its stakeholders.”

Economic growth in Brazil has enabled the country to be among the largest economies in the world, but it also faces major socioeconomic issues. Brazil has a housing deficit affecting 28.5 million people in low income markets. Sao Paulo State has the greatest housing deficit representing approximately 1.48 million houses. Bille aims to reduce this historical gap between supply and demand, by providing quality housing to be acquired by Minha Casa, Minha Vida financed customers. This will enable low income populations to become homeowners, reduce their monthly expenditure in housing and build family equity.

“Our investment in Bille is exciting for Bamboo Finance as it allows us to build presence in a country where there is a large need and potential for ventures that produce and deliver products and services to low income populations. We have seen an increase in investment opportunities in Brazil and expect to support additional innovative and scalable enterprises soon” said Ana Maria Aristizabal, Investment Associate at Bamboo Finance.

“The R$7M (US$3.6M) investment from Bamboo Finance is providing will play a critical role in helping Bille to accelerate the speed of access to 1,200 houses by low income families. Bamboo

Finance has helped us scale our operations and engage other institutional investors. We hope this sets the trend for more funding, which will convert in higher offer of quality houses for low income people” explained Claudemir Quilici, co-founder and CEO of Crinale.

About Bille and Crinale:

Crinale, the company that manages Bille, one of their Special Purpose Enterprises (SPE), was founded in 2009 by Claudemir Quilici and Andre Molinari. Since its inception, Crinale has completed six affordable housing projects in five towns in Sao Paulo State. The company’s model focuses on diminishing the time it takes to secure financing, building nimble and efficient operations, and providing access to quality land. It is this winning combination that has created a competitive advantage for Crinale. To date, Crinale built and sold over 1,100 houses to low income families in the interior of the State of Sao Paulo, raised more than R$80M from private investors, and delivered attractive financial returns to its investors.

About Bamboo Finance:

Bamboo Finance is a global private equity firm managing 250M USD representing a portfolio of 35 investments in 24 countries with offices in Bogota, Singapore, Nairobi, Luxembourg, and Geneva. Our pioneering history of funding financial services in emerging markets gives us a unique ability to identify regions that are poised for growth and sectors that drive economic viability. We invest in companies with accelerated distribution capabilities that merge technology and business model innovation to improve quality and expand access to good and services such as housing, healthcare, energy, financial services and education. We are a recognized leader in the field of impact investing with a track record of delivering commercial returns to our investors.

Source: Press Release (link opens in a new window)