IIC Will Provide Long-Term Financing For The Purchase Of Low-Cost Housing

02/27/2000

IIC support for a lease-to-own program will enable low-to-middle income families in Chile to own their own homes WASHINGTON, D.C. — On February 10, 2000, the Board of Directors of the Inter-American Investment Corporation (IIC) ) approved a $7 million loan to and a $1 million equity investment in Delta Leasing Habitacional, S.A. in Chile.

Delta Leasing will use the funds provided by the IIC to finance the purchase of low-cost housing to be leased to individuals. The project also involves the development and sale of lease-backed securities, a new instrument in Chile.

The loan is expected to facilitate the creation of about 15,000 long-term leasing contracts and the securitization of those contracts, which will strengthen and deepen Chilean capital markets and generate more than $13 million annually for Chile’s GDP.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org