IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, granted Trinidad and Tobago Mortgage Finance Company Ltd (TTMF) a partial credit guarantee for TT$120 million (equivalent to US$17.6 million) to support the issuance of a mortgage secured facility for TT$400 million (equivalent to US$58.9 million).
The operation supports the expansion of the residential mortgage portfolio for TTMF, mainly focused on reaching middle and low-income citizens. TTMF offers financial products adapted to the specific needs of the most disadvantaged and vulnerable citizens.
IDB Invest’s partial credit guarantee helps TTMF to reinforce its operational attractiveness to the local market and supports the development of the Caribbean capital markets.
The issuance has a tenure of five years with a bullet payment at maturity. The partial credit guarantee replicates the terms and amortization scheme of the facility, and it covers up to TT$120 million or 30 percent of the facility’s outstanding principal amount.
The financing was completed on December 28, 2018 and was well-subscribed by the local market.
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 Latin America and the Caribbean businesses. 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 US$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.
About Trinidad and Tobago Mortgage Finance Company (TTMF)
Trinidad and Tobago Mortgage Finance Company (TTMF) was created in 1965 as an organization whose key objective and purpose is to provide its customers with the peace of mind that home ownership brings. TTMF focuses on providing affordable residential mortgage financing in Trinidad and Tobago and as a non-deposit taking institution, TTMF relies primarily on the issuance of bonds/debentures and the sale and administration of mortgages to Home Mortgage Bank to fund its lending operations. As of September 2018, TTMF’s total assets amount to TT$3,757 million and a mortgage loans portfolio of TT$3,127 million.