IIC Signs Agreement With Brazilian Mortgages Companhia Hipotecária And Brazilian Securities Companhia De Securitização

10/05/2000

SÃO PAULO, BRAZIL - The Inter-American Investment Corporation (IIC)1, signed a loan agreement and an agreement to subscribe $10 million in mortgage-backed securities with Brazilian Mortgages Companhia Hipotecária and Brazilian Securities Companhia de Securitização. The project will help to introduce, through private initiative, mortgage-backed securities in the Brazilian capital markets, as a new long-term investment instrument for institutional investors.

The signing ceremony took place yesterday in São Paulo, Brazil. The document was signed by Mr. Fábio de Araújo Nogueira, General Manager of Brazilian Mortgages Companhia Hipotecária; Mr. Fernando Cruz, General Manager of Brazilian Securities Companhia de Securitização; Mr. George Meisel, Director of Banco Ourinvest; Mr. João Rossi, Chairman of Rossi Participações Limitada; and Mr. Jacques Rogozinski, General Manager of the IIC.

The funding from the IIC will help strengthen the capital of both Brazilian Mortgages and Brazilian Securities, enabling them to participate jointly in the development of a secondary mortgage market in Brazil. This will, in turn, improve the quality of life for low- and middle-income families, making it easier for them to become homeowners.

By participating in this project, the IIC will be contributing to the development of the mortgage origination and securitization sectors, which potentially can play a catalytic role in developing a secondary mortgage market in Brazil.

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1 The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. The IIC has thirty-six member countries: twenty-five in Latin America and the Caribbean and eight in Europe, plus the United States, Japan, and Israel. For further information on IIC's activities please contact Mr. Jorge Roldán at 202-623-3948.

Contact: Víctor Hugo Moscoso (in Washington D.C.)

Telephone: (202) 623-3918

Email: victorhm@iadb.org