La Hipotecaria El Salvadorian Mortgage Trust 2016- (DFC-2016-LAHIPOTECARIA)

Countries
  • El Salvador
Where the impacts of the investment may be experienced.
Financial Institutions
  • US International Development Finance Corporation (DFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
La Hipotecaria El Salvador Mortgage Trust
The holder of the loan, grant, or other investment.
Sectors
  • Construction
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 33.75 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 45.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ DFC website

Updated in EWS Jul 31, 2020


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Project Description

El Salvador suffers from twin deficits of affordable housing and affordable housing finance. Total systemic mortgage production in the country dropped 12% in 2015 due to macroeconomic and social problems. Liquidity in the market is very limited and there is no internal capacity to invest in mortgage backed securities at this time. La Hipotecaria has maintained its lending programs in the face of these challenges and the OPIC guaranty will bring badly needed foreign investment into the country and the housing sector. The $45 million in proceeds from La Hipotecaria’s mortgage-backed securitization will be used to originate new affordable mortgages for El Salvadorian middle-class borrowers.

Investment Description
  • US International Development Finance Corporation (DFC)

$33.75 million for up to a 30-year term.

$45 million ($39.6 million in Class A Notes, $4.5 million in Class B Notes and $900,000 in Class C Notes).

Contact Information

Not available