Mexican Constructor Places $250 Million Notes

Mexican home construction company Homex has announced it has successfully placed $250 million of 7.55% senior guaranteed 10-year notes with US institutional investors. The notes, which are due in 2015, are the first of this kind to be issued by the domestic home construction sector in Mexico. The issue extends the company’s debt profile by five years as well as strengthening its balance sheet following the purchase of Casas Beta. The home construction sector has seen robust growth in the past four years due to the increase of mortgage lending by government and private institutions.