Press Release: IFC and IDEI Announce Green Bond Issuance for 800 Million Pesos to Promote Sustainable Construction in Mexico
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.
Photo courtesy of Josh Withers.