Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Geo, Urbi Lead Mexico Builder Slump on Loan Plan Skepticism

Corp. Geo SAB and Urbi Desarrollos Urbanos SAB led a plunge in Mexican homebuilders on speculation government loan guarantees won’t be enough to buttress the industry from a slump in cash flow.

Corp. Geo tumbled 7.7 percent, the most in two week, to 10.13 pesos at the close of Mexico City trading while Urbi declined 7.6 percent to 4.04 pesos. Desarrolladora Homex SAB fell 5.4 percent to 26.88 pesos. The Habita index of homebuilders dropped 5.4 percent.

Mexico’s government announced a program this week to cover as much as 30 percent of banks’ losses on loans made to the nation’s homebuilders. The companies’ securities have plunged this year amid disappointing earnings and credit rating reductions as balance sheets show a hemorrhaging of cash.

“It’s not clear that the guarantee program is going to be sufficient to really be the fix for the entire industry,” Robert L. Rauch, who helps oversee $3.3 billion as a partner and money manager at Gramercy Funds Management, said in a telephone interview.

Urbi’s $500 million of bonds due in 2022 tumbled 6.9 cents to 75.14 cents on the dollar at 4:58 p.m. in New York, the lowest price since the securities were issued in January 2012. The yield rose 1.65 percentage point to 14.87 percent.

Alberto Aguilar, a columnist with the Mexico City daily El Universal, reported that Urbi may have missed a $60 million payment on a loan from Prudential Financial Inc. Aguilar didn’t say how he obtained the information.

Alma Beltran, a press official at Urbi, said executives weren’t immediately available to comment because they were attending an industry event in New York. John Chartier, a spokesman at Prudential, declined to comment.

Analysts, traders and investors are meeting with government officials and companies today for the second day of a Mexican homebuilder event in New York.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.