IDB Invest and TTMF Promote Access to Affordable Housing in Trinidad and Tobago
IDB Invest closed a revolving loan for up to 300 million Trinidad and Tobago dollars (TTD) (approximately $44 million) to Trinidad and Tobago Mortgage Finance Company Limited (TTMF). The loan will increase access to financing for residential housing among low and middle-income first-time homeowners in the Republic of Trinidad and Tobago.
The loan will support the expansion of TTMF’s mortgage portfolio. TTMF offers financial products adapted to the needs of the most disadvantaged and vulnerable citizens.
The transaction will feature several disbursement cycles to support a potential future local debt capital markets issuance by TTMF with the securitization of the mortgages originated and accumulated by TTMF through this financing.
The revolving loan has a 6-year availability period, comprising three cycles, each with a two-year term. At the end of each cycle, TTMF is expected to repay the outstanding loan using the proceeds of a debt capital market issuance in the form of mortgage-backed debt instruments issued locally. Once repaid, the revolving line will once again be available to TTMF for disbursements. If fully utilized, the overall amount financed by IDB Invest may reach up to TTD900 million (approximately US$133 million).
It is also expected that, as part of the transaction, there will be an advisory component to develop a gender strategy that facilitates greater access by women to residential mortgages. Low-income households headed by women are disproportionately affected by housing costs, given that the ratio of women's earnings to men's is estimated at 0.64 and that women are 15% less likely than men to borrow from financial institutions.
IDB Invest's participation will also help improve TTMF's corporate governance related to the selection criteria of board members and the board composition.
This transaction is expected to contribute to five United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10) and Sustainable Cities and Communities (SDG 11).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of US$15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Trinidad and Tobago Mortgage Finance Company Limited
Trinidad and Tobago Mortgage Finance Company Limited (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 2022, TTMF’s total assets amount to TTD5.1 billion and a mortgage loans portfolio of TTD4.2 billion.