IFC Participates in US$545M Green Credit Facility to Support Industrial Parks in Mexico

The facility includes a US$100 million sustainability-linked loan provided by IFC, alongside a US$445 million syndicated term loan and a standby revolving line from commercial banks.

The International Finance Corporation (IFC), a member of the World Bank Group, has announced its participation in Vesta’s US$545 million Global Syndicated Sustainable Credit Facility aimed at supporting the development of green industrial parks in Mexico. This facility is designed to facilitate the country’s growing demand for sustainable industrial spaces while supporting its nearshoring efforts and helping Mexico achieve its climate goals.

The facility includes a US$100 million sustainability-linked loan provided by IFC, alongside a US$445 million syndicated term loan and a standby revolving line from commercial banks. IFC also served as the Sustainability Coordinator for the entire credit facility, underlining its commitment to driving sustainable development in the region.

In addition to the financial support, IFC will engage with Vesta through its Green Pathways for Real Estate Institutional Portfolios (GRIP) decarbonization program, offering advisory services to help Vesta develop a comprehensive decarbonization strategy for its real estate portfolio. This will include identifying and implementing strategies to reduce carbon emissions across Vesta's operations and building projects.

Aligning with Mexico’s Climate and Economic Objectives

The investments in green industrial parks are in line with the World Bank Group’s broader objectives to foster private sector investment in sustainable infrastructure, while simultaneously aiding the Mexican government in meeting its climate change goals. As Mexico seeks to attract more manufacturing and industrial activity due to nearshoring trends, this investment will provide a green solution to industrial development, ensuring long-term sustainability.

Juan Sottil, Vesta’s Chief Financial Officer, highlighted the importance of the financing for the company’s ongoing growth plans: “We’re pleased to have completed this new financing. It provides us with continued access to strategic liquidity reserves at a competitive cost, as we remain focused on executing our short- and long-term initiatives aligned with Vesta’s Route 2030 growth plan and maintaining prudent financial management.”

Strengthening Mexico’s Industrial Base

Olaf Schmidt, Director of Manufacturing, Agribusiness, and Services for Europe, Latin America, and the Caribbean at IFC, emphasized the importance of the project for Mexico’s economic growth and sustainable development: “Mexico's strategic location and robust industrial base make it an ideal destination for nearshoring investments. By partnering with Vesta to develop green industrial parks, we are not only supporting Mexico's economic growth but also promoting sustainable development and climate resilience. This partnership will set new standards for sustainability in Mexico's real estate market and serve as a benchmark for future developments.”

Vesta’s Commitment to Sustainability

In recognition of its sustainability efforts, Vesta was awarded EDGE Champion status by IFC in 2023, an acknowledgment of the company’s commitment to decarbonizing its building portfolio. EDGE (Excellence in Design for Greater Efficiencies) is IFC’s innovative green building certification that helps developers reduce their environmental impact through better building practices. To date, Vesta has achieved EDGE certification for more than 470,000 square meters of its real estate projects, demonstrating its dedication to building sustainable, energy-efficient spaces.

Long-Term Impact on Mexico’s Industrial Sector

This collaboration between IFC and Vesta marks a significant milestone in the development of sustainable industrial infrastructure in Mexico. By promoting green industrial parks, the partnership will help meet the growing demand for industrial space while setting the stage for a more sustainable real estate market. The facility is expected to play a key role in attracting future investments, creating jobs, and supporting the transition toward a low-carbon economy in Mexico.

The green industrial parks that emerge from this initiative will not only address the need for industrial expansion in the country but also align with global sustainability trends. This project serves as a model for future developments, demonstrating the potential for sustainable finance and eco-friendly infrastructure to drive long-term economic and environmental benefits.