IIC Grants Line of Credit of up to US$13 million for Housing Sector in Panama and El Salvador
Funds will finance homes for middle- and low-income Panamanians and Salvadorans
Washington, D.C., October 29, 2014 – The Inter-American Investment Corporation (IIC) approved a line of credit of up to US$13 million for Banco La Hipotecaria S.A. (Panama) (“LHP”) and La Hipotecaria S.A. de C.V. (El Salvador) (“LHES”) that will provide home financing to more than 200 middle- and low-income families in Panama and El Salvador.
“The objective of this IIC financing is to continue strengthening the long-term relationship between both institutions, to jointly enable access to mortgage financing, and at the same time to improve the quality of life of low- and middle-income families in those two countries,” said Cristina Paredes, the IIC investment associate in charge of the operation.
LHP is a general-purpose bank established in Panama. LHES was established in 2003 in El Salvador and is a non-bank corporation. Both entities originate, manage, and securitize residential mortgage loans.
Giselle de Tejeira, the chief financial officer of Banco La Hipotecaria S.A., commented: “We have maintained a successful relationship with the IIC since 2006, and we are very happy to have the support and confidence of a world-renowned multilateral institution like the IIC, which supports development in our countries by improving the quality of life of residents, helping us finance a housing solution so that thousands of families can turn their dreams into reality by owning a home.”
This is the third operation the IIC has done with both entities. Previous loans have gone toward financing more than 1,000 homes for middle- to low-income clients in El Salvador and Panama.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Cristina Paredes
Telephone: +(595 21) 616-2320 in Asunción(Paraguay)