IDB Invest and Banco Davivienda support closing the housing deficit in Colombia
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, has signed a $200 million senior loan to Banco Davivienda in Colombia. The project will provide financing for mortgage loans for two government programs dedicated to social housing development known as Priority Housing (VIP, in Spanish) and Social Housing (VIS, in Spanish).
Banco Davivienda is the leader in housing finance in Colombia. As of June 2017, it had 40 percent of the total VIP and VIS portfolio in the country. The IDB Invest loan will allow Banco Davivienda to increase the reach of its operations, particularly the financing of VIS, a segment that requires longer repayment periods. The loan to Banco Davivienda goes up to 5.5 years with a single payment at maturity.
Colombia has achieved a significant reduction in housing deficit indicators in recent years. However, the percentage of households that still lack adequate housing finance is still significant. Increasing mortgage offerings and establishing a robust housing finance system that facilitates access to formal housing is a priority for the country.
The project also includes a component that seeks to increase knowledge-sharing of successful experiences in other countries similar to Colombia, in order to incorporate sustainability criteria in the construction and renovation of residential buildings.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation. www.idbinvest.org &
Davivienda is part of Grupo Empresarial Bolívar, which for more than 70 years has accompanied people, families and companies in the fulfillment of their objectives. They are recognized for the unique management of their image through communication, becoming one of the five most valuable brands and the first advertising bank in Colombia. Its integral portfolio of products and services meets the needs of people, companies, the rural sector, mining and energy, with constant innovation and exclusive offers for each segment. They are the exclusive bank in Colombia for the handling of Diners cards. They have a team of more than 15,000 people to serve more than 6.6 million customers through 743 offices, 2,400 Daviplata1 service points, and nearly 2,000 regional ATMs. Besides Colombia, they have operations in Panama, Costa Rica, Honduras, El Salvador and Miami, in the United States. www.davivienda.com