17 September 2012

IFC, IFC ALAC Fund invest $60 Million in Brazilian real-estate company Canopus

Belo Horizonte, Brazil - 17 September 2012 - IFC, a member of the World Bank Group, and the IFC African, Latin American, and Caribbean Fund (IFC ALAC Fund), will invest $60 million in Brazilian real-estate company Canopus Holding S.A. to expand its existing housing operations and build more than 20,000 low-income homes through its subsidiary EMCASA. 

IFC will provide an equity investment of up to $25 million, and the IFC ALAC Fund will provide up to $35 million in equity. The IFC ALAC Fund is managed by IFC Asset Management Company, a wholly owned subsidiary of IFC. 

Canopus’s expansion plans will help address Brazil’s deficit of 5.6 million housing units, put middle- and low-income Brazilians in affordable homes, and create construction and employment opportunities for Brazilians. The company’s diverse housing projects will also stimulate urban infrastructure and community development by creating demand for roads, electrical lines, hospitals, shops, restaurants, and recreational areas. 

Canopus’ wholly owned subsidiary EMCASA will manage the construction of the 20,000 low-income housing units over the next five years, including 6,000 in Brazil’s underdeveloped North and Northeast. These units will be built under the government’s Minha Casa Minha Vida program, ensuring they are available to families making less than 1,600 Brazilian reais—the equivalent of about $800—a month. 

“Supporting Canopus, a leader in real estate and affordable housing, aligns with IFC’s strategy to help expand the local homebuilding market in Brazil,” said Oscar Chemerinski, IFC’s Regional Director for Manufacturing, Agribusiness, and Services in Sub-Saharan Africa and Latin America & the Caribbean. “IFC’s global industry knowledge and long-term financing will help fight Brazil’s housing deficit and represent inclusive opportunities for low-income groups.” 

Headquartered in Belo Horizonte, the capital of Minas Gerais state, Canopus is a family-owned real estate development company involved in the acquisition of land, planning, construction of housing projects, and sales. Founded in 1971, the company has built a strong regional brand in high and middle-income housing and expanded its operations to São Paulo, Rio de Janeiro, and Brasília. In 1996, it created EMCASA to broaden its reach into the low-income housing segment. Now, EMCASA has a thriving operation across Brazil – especially in the North, South, and Southeast – all through the Minha Casa Minha Vida program. 

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. 

Source: IFC