The real estate self-financing company HIR Casa placed its third issue of an unsecured loan for 463 million pesos on the Mexican Stock Exchange (BMV) to increase its housing supply and provide coverage to niches that Infonavit and traditional banking do not operate.
This Thursday, the lifting of debt by HIR Casa was for 463 million pesos in its direct issuance format (backed by the company’s balance sheet). This financing will serve to offer 1,300 individual loans to families in Mexico and ensure growth in a complicated environment in terms of non-bank financial issues.
Eduardo Guzmán, General Director of HIR Casa pointed out that in recent years the sector they serve (unaffiliated and independent professionals) has grown in terms of participation in the Gross Domestic Product (GDP) and this has created a portfolio with a value close to 18,000 million pesos with a growth of 22% compared to the first issue in 2018.
The directors noted that the confidence to issue debt was due to the good acceptance of investors in the BMV in past issuance programs of the trust stock certificates of 2018 (with 700 million pesos) and 2019 (1,000 million).
“Since 2005, when we changed our business model, we knew that we were going to need to raise additional money so that our clients could finally sign their deeds. We made our first funding operation in 2015 and we have been growing organically. First with bank credits and naturally; and second, of course, is to go to the stock market. Which is a great opportunity for Mexican companies,” added Guzmán.
Until September 2022, HIR Casa registers nearly 800 closed financings for housing. For the following year, it is expected that the demand of young people and people who are not served by traditional banks will continue to grow, supported by a significant commitment to technology and reach more places where it was not possible before.
“We were making a stamp for the third time. HIR Casa is a company with a very interesting and long-standing history of successful growth. It came to seek financing so that we could support them in that growth in 2018 with a first and second issue. This year carried out the first placement of a long-term stock certificate, it was very well received at a very difficult time,” said José-Oriol Bosch Par, General Director of Grupo BMV.
strategies against inflation
Regarding the environment of uncertainty that the economy is experiencing due to strong inflation and the rise in interest rates, Daniel González, Deputy General Director of HIR Casa, said that the company has been able to survive in environments of high interest rates. However, he expressed that inflation has taken them by surprise in the third quarter of this year, “the most important thing is to know what is happening with long-term inflation and the forecasts for 2023 and 2024 may be in the range of 3.5% and 4%, which has had a little impact on long-term mortgages.”
Other strategies that have been followed to mitigate the impact of inflation are hedges with derivative instruments that have allowed them to maintain their margins in order to continue offering attractive rates to their clients in such a way that they do not substantially increase their financing.
The cost of materials has had significant adjustments in recent months, which is why Ari Hirschhorn mentioned that they hope that the prices prior to the pandemic will normalize and return.
