IDB Invest granted financing of up to US$20 million to Menorca Inversiones SAC, a company dedicated to the development of hurban rehabilitation and housing of social interest that prioritizes low-income families in Peru.
According to the company, the funds from this transaction will be used to finance part of the company’s investment plan for the 2022-2023 period, which includes the purchase of land for the development of this type of project.
The operation will allow Peruvian families to have the opportunity to improve their living conditions and formally buy a lot that provides good standards of basic quality of life, this includes water, electricity, sewage, security, green spaces, health services. and children’s education.
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Menorca points out that the majority of potential buyers are not included in the financial system, so direct financing from companies like Menorca is for many people the only alternative to buying a lot and becoming formal owners for the first time. “With this formal purchase, customers may eventually be subject to credit by financial institutions,” they said.
In addition, they estimate that by 2024, a total of one million square meters of land will be developed, delivering more than 2,500 lots annually. Likewise, the company plans to increase its workforce by more than 28% until 2024 and strengthen its local value chain, increasing purchases from local suppliers by more than 75% until 2024.
IDB Invest will also offer advisory services to develop a comprehensive strategy to integrate circular economy practices into the business.
“The development of social housing has a double role in the economic and social development of Latin America and the Caribbean, since it contributes to the growth of the Gross Domestic Product in addition to contributing to improving the inclusion and equality of the most disadvantaged classes,” they commented.
This transaction is expected to contribute to four United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Sustainable Cities and Communities (SDG 11) , Responsible production and consumption (SDG 12).
