Mexican land developer and homebuilder Vinte targets dual social and climate benefits from its sustainable bond series – with its latest deal to finance green-certified houses estimated to save 157,000 cubic litres of water and 2,400 tonnes of carbon dioxide equivalent each year.

Vinte communities, which target mixed 'low- and medium' to 'mid-high-income' families for its properties, comprise of housing communities that include recreational areas, schools, water treatment plants, dog parks, bike trails and cluster neighbourhoods with 'higher security'.

Its November sustainability & SDG Impact bond raised MXN1.5 billion ($91 million) to finance the construction of 3,700 homes certified in line with EDGE, a standard developed by the International Finance Corporation.

The project will also include an investment in urbanisation and 'sustainable' community infrastructure of almost MXN354 million.

Thanks to the bond proceeds, Vinte raised an existing commitment made around the COP26 conference in 2021, to build 19,500 EDGE-certified houses by 2030, upward to 25,000 houses. Vinte did this as it had already built 85% of the homes required under its initial commitment.

IDB Invest was an anchor investor, with a commitment of up to MXN750 million – the first time that the private sector arm of the development bank participated as an anchor in the Mexican market.

“This project will allow us to maximise our impact through one of the key sectors for development and for improving lives in the region”, said Guillermo Foscarini, director and division chief of corporates of IDB Invest. “At IDB Invest, we continue innovating to mobilise financing and attract new investors to support sustainable business across Latin America and Caribbean countries.”

“The VINTE 23X SDG issuance demonstrates the confidence that exists internationally in social and green investments in Mexico and particularly in the homebuilding sector, an undisputed ally in 'nearshoring', in the tourism sector and in the organic growth of our country,” said Domingo Valdes, member of the board and CFO at Vinte.

Sustainable Debt Awards judges praised the bond for "blending" social and environmental goals in an "innovative social bond ... with the potential to benefit many families in Mexico and a unique focus on medium income families".

It has the potential for "strong social impact given the nature of these communities compared to other options", the judges said.