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Home Mortgage Bank Loan

Project number 13065-01
Country Trinidad and Tobago
Sector Financial Institutions
Status In implementation

Basic information

Company name
Home Mortgage Bank
Investment type Loan
E&S category
FI-3
Disclosed date
Projected board date
Approval date
Signed date
Team Leader
Thomas, Stephen

Financial Summary

Financing amount $ 36,816,100
Financing Currency
TTD

Client
information

Client Contact Name: Mr. Brent Mc Fee Title: CEO Phone Number: (868) 625 4972 Email address:  brent.mcfee@homemortgagett.com

PROJECT
SCOPE
AND
OBJECTIVE

The proposed transaction with Home Mortgage Bank (“HMB”) consists of a senior secured financing of up to TT$250 million with a tenor of up to 5 years, to be funded by IDB Invest. One of the mandates of HMB is to develop the secondary mortgage market. Through the use of proceeds, the IDB Invest’s role will be to support and finance the continued growth and development of the housing finance industry in Trinidad and Tobago.

Environmental
and
Social
Review

  1. Scope of Environmental and Social Review. The environmental and social review of the proposed transaction was carried out through online desk research, a client web-conference call, and a portfolio review. Home Mortgage Bank are new clients to IDB Invest and conduct Environmental and Social (“E&S”) oversight for the operation in question. 
  2. Environmental and Social Categorization and Rationale. The proposed operation is classified as an FI-3 per IDB Invest’s Sustainability Policy. On average, the mortgages to be supported will be $372,000 TT dollars. Category A sub-projects, per IDB Invest’s definition, are not considered within this mortgage segment.
  3. Environmental and Social (E&S) Risks and Impacts. The main E&S risks of this project are associated with the HMB’s capacity to identify and manage the E&S risks associated with its lending activities.  Some potential risks could include inappropriate development location, poor building design (including ability to withstand natural disasters), inadequate construction, unresolved land tenure issues, contaminated sites, failure to comply with building regulations, use of hazardous materials during construction and proximity to environmentally and socially sensitive areas. HMB will be expected to conduct oversight on identifying, mitigating and managing any issues found in investments. Environmental, Social Health and Safety (“ESHS”) impacts and risks associated with the mortgage financing sector are likely to be minimal in nature.     
  4. Mitigation Measures. HMB’s mortgage process includes compliance with all national regulatory approvals prior to disbursement of a loan. HMB has an Enterprise Risk Management Policy and a manager for Risk Management. The company also has a Human Resources (“HR”) policy which includes an internal grievance mechanism and guidelines for non-discrimination and anti‑harassment. 71% of the management team are women, and the company employs 29 people (20 women and 9 men). HMB will be required to ensure that all mortgages supported under the loan comply with IDB Invest’s Exclusion List, applicable E&S local laws and their current E&S oversight process. HMB will be required to take part in IDB Invest’s online training course on Environmental and Social Risk Management.
  5. Environmental and Social Action Plan. N/A
  6. Contact Information For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the email divulgacionpublica@iadb.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or  MICI@iadb.org, or calling +1(202) 623-3952.
For inquiries, comments and requests about the project

For inquiries, comments and requests about the project

Information Request