IDB Invest partners with Home Mortgage Bank and RBC Caribbean to promote economic development in Trinidad and Tobago
IDB Invest, a member of the IDB Group, provided a loan to Home Mortgage Bank (HMB) for $250 million Trinidad and Tobago dollars, with a tenor of five years. With support from RBC Caribbean, the financing will be used by HMB to finance the growth of HMB’s secondary mortgage portfolio supporting middle and lower middle-income families and individuals in Trinidad and Tobago.
The project is expected to make a positive economic contribution to Trinidad and Tobago by supporting housing financing, while also promoting the growth of Trinidad and Tobago’s domestic financial services market. This deal also offers an opportunity to extend the duration of financing at similar rates and the possibility of being secured by a pool of mortgages rather than investment securities.
“At IDB Invest we are very proud to carry out the first bilateral loan in local currency with a non-bank financial institution in Trinidad and Tobago. This partnership with RBC Caribbean and Home Mortgage Bank will increase access to housing financing for middle and lower middle-income families and individuals in Trinidad and Tobago,” said James Scriven, CEO of IDB Invest. “In addition, it will promote the growth of the domestic financial services market and contribute to its economic development. Thanks to this financing, we reaffirm our commitment to promote trade and development in the Caribbean region.”
Acting CEO of HMB, Brent McFee, commented, “HMB is proud to partner with IDB Invest in undertaking such a momentous venture. This facility will not only contribute to the economic development of Trinidad and Tobago but improve the lives of hundreds of families. In addition to the overt benefits, this facility will assist HMB in the fulfilment of its mandate, set by an Act of Parliament, to maintain a secondary mortgage market in Trinidad & Tobago.”
Darryl White, CEO of RBC Financial Caribbean Limited added, “RBC’s purpose of helping our clients thrive and our communities prosper is in harmony with IDB Invest’s mandate to support sustainable development in its member countries. We are excited to partner with IDB Invest in this innovative transaction that affords the opportunity of home ownership to hundreds of citizens of our twin island nation.”
This deal potentially contributes to four United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), 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 $13.1 billion in asset management and 385 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 Home Mortgage Bank
Established in 1985, HMB is a regulated, systemically important, non-bank financial institution, supervised by the Central Bank of the Republic of Trinidad and Tobago. It is the only privately-managed mortgage institution, specifically established by an Act of Parliament in the legislature to facilitate the creation of a secondary mortgage market in the country and provide market liquidity through the purchase of mortgages from primary mortgage market financial institutions in Trinidad and Tobago. HMB is also regulated by the Trinidad and Tobago Securities and Exchange Commission, the securities regulator of the country, which governs its debt raising capabilities in the domestic capital markets, the review of its collective investment schemes, and the continuous disclosure of its management and audited financials to the investing public in Trinidad and Tobago.
About RBC Caribbean
With more than 100 years of dedicated service to the Caribbean, RBC has a presence in 17 countries across the Caribbean, serving nearly one million clients. As one of the Caribbean’s leading diversified financial services companies, RBC provides personal and commercial banking, wealth management, corporate and investment banking, insurance and trust and asset management services to a range of clients, including individuals, small businesses, general commercial entities, regional and multi-national corporations and governments.