GEO Secures an Additional One Billion Peso Revolving Credit Line for Housing Construction
MEXICO CITY, Jan. 19, 2011 /PRNewswire/ -- Corporacion GEO, S.A.B. de C.V. (BMV: GEOB; GEOB: MM, ADR Level I CUSIP: 21986V204; Latibex: XGEO), Casas GEO, Mexico's leading affordable entry-level housing developer, today announced that it has successfully concluded an agreement with Grupo Financiero Banamex, securing up to one billion pesos through an innovative new longer-term revolving credit line structure.
This additional line of credit will be used to finance low-income housing projects and is expected to gradually replace other construction-related credit structures, as it allows more operational flexibility and reduces financing costs. This new line of credit is in addition to GEO's existing credit facilities and will have a long-term maturity of four years, improving the Company's debt profile.
GEO believes that this new credit structure will help strengthen the Company's balance sheet, reducing costs associated with construction financing while ensuring long-term resources for continued growth.
This agreement is also evidence of the confidence Grupo Financiero Banamex has in GEO's future outlook and in the Company's successful strategy of focusing on Mexico's low-income population.
About Corporacion GEO, S.A.B. de C.V.
Corporacion GEO is a leading housing developer in Mexico and one of the largest in Latin America. The Company is engaged in all aspects of design, development, construction, marketing, sales and delivery of mainly low-income housing developments in Mexico. With operations in 19 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 510,000 homes which currently provide housing to 2,000,000 people. GEO's Solid Business Model focuses mainly in the Affordable Entry Level and Economic segments, which are supported by government policies and by the Mexican Housing Institutions INFONAVIT and FOVISSSTE. For more information, visit www.corporaciongeo.com.
SOURCE Corporacion GEO, S.A.B. de C.V.
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