MEXICO CITY, Oct. 10 /PRNewswire/ -- Corporacion GEO S.A.B de C.V. (BMV: GEOB; CORPGEO MX, ADR Level I CUSIP: 21986V204; Latibex: XGEO)
GEO, one of Mexico's leading low-income housing developers, would like to take this opportunity to update the market about its current foreign exchange exposure/financial profile, and to confirm that its business model remains intact.
The Company's US Dollar denominated debt corresponds to a US $30 million eurocommercial paper, with maturity in 2009, and which represents approximately 5% of GEO's total debt. The company considers the impact of this position not to be material given the current foreign exchange markets.
GEO has only one derivative instrument, which consists of an interest rate CAP for TIIE (Leader Rate) at 9% covering 2,000 million pesos.
GEO's solid business model focuses mainly on the Affordable Entry Level and Economic segments of the market, a demographic that is supported by government policies and by the Mexican Housing Institutions INFONAVIT and FOVISSSTE.
About Corporacion GEO S.A.B. de C.V.
Corporacion GEO is a leading housing developer in Mexico and one of the most important in Latin America. The Company is engaged in all aspects of design, development, construction, marketing, sales and delivery of low-income, middle-class and residential housing developments in Mexico. With operations in 33 cities across 15 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 400,000 homes which currently provide housing to 1,600,000 people. More information can be found at http://www.casasgeo.com/
