In a pair of innovative operations, the Corporation will help make affordable housing available in Brazil and contribute to the development of the secondary market for mortgage-backed securities. In the first of the two operations, Brazilian Mortgages Companhia Hipotecária (a real estate financing company that provides mortgage loans to middle- and lower-income individuals) will receive a $200,000 subordinated loan from the IIC, and Brazilian Securities Companhia de Securitização (a securitization company) will receive a $300,000 subordinated loan and sell the IIC $10 million in mortgage-backed securities. The two companies will target the residential segment with an average home price of $30,000. Brazilian Mortgages will originate the mortgages and sell them to Brazilian Securities. The latter will issue mortgage-backed securities to the IIC. As the secondary mortgage market develops, the IIC will sell these securities through Brazilian Securities to secondary market investors, including insurance companies and pension funds. IIC’s financing will enable the construction of around 11,000 new homes in São Paulo. The project will also contribute around $28 million annually to Brazil’s GDP.