Desarrolladora Homex SAB, Mexico’s biggest homebuilder by sales, said it didn’t make an interest payment due today on its dollar bonds maturing in 2019.
The company plans to use a 30-day grace period, according to a regulatory filing distributed today.
The bonds rose 0.16 cent to 37.33 cents on the dollar at 4 p.m. in New York. Homex’s shares rose 0.6 percent to 8.60 pesos in Mexico City trading.
Bonds sold by Mexico’s biggest homebuilders have plunged this year as a shift in government policy to promote more capital-intensive apartments in urban areas over homes in commuter towns depleted their cash. Homex and its largest publicly traded competitors, Corp. Geo SAB and Urbi Desarrollos Urbanos SAB, have hired financial advisers to study debt restructurings.
The government’s policy move has stemmed a decade of urban expansion in Mexico, with $20,000 homes springing up in subsidized communities built from scratch. Many of those homeowners have abandoned properties to return to cities, in a rejection of deteriorating neighborhoods and long commutes.