The project consists of a senior bond subscription for the equivalent in Colombian pesos of up to US$15 million. The bond will be issued by La Hipotecaria Compañía de Financiamiento through an offer in the Segundo Mercado Colombiano. The bond will have a tenor of 5 years with a 2-year grace period. The proceeds from the issuance will be used to finance the growth of the mortgage loan portfolio, focused on the middle and lower-middle income segments.
LHCF, the Colombian subsidiary of Banco La Hipotecaria S.A., is a financing company supervised by the Superintendencia Financiera de Colombia ("SFC") with operations as a regulated entity since April 2014. It provides residential mortgage financing at fixed rates, in COP, to medium and low-middle income segments of the population for the purchase of their primary residence, new or used, or to finance the transfer of their mortgages. Additionally, LHCF offers personal loans, but only to its mortgage clients.
IDB Invest will provide technical assistance to LHCF to design a framework that defines the selection, monitoring and evaluation of the mortgage portfolio in a manner aligned with the Sustainable Development Goals ("SDG") defined in the framework of the United Nations Development Program so that the issue is cataloged as a social bond.