This Project aims to support the increase in mortgages offerings for Priority Housing (“VIP”) and Social Housing (“VIS”) promoted by the Colombia's federal government as part of its programs for social housing development by means of an unsecured US dollar-denominated senior loan of up to US$ 200 million to Banco Davivienda S.A. The loan term is of up to five years with a single payment at maturity date.
Brief Project Description: Banco Davivienda S.A. (“Davivienda”), a leader in housing financing, holds a 26.0% share of the domestic market and is one of the most active participants in the financing programs for social and priority housing in Colombia, which seek to reduce the population's vulnerability, as well as to improve the quality of life amongst the Colombian people. The VIS and VIP portfolio represents 34.5% of Davivienda's entire mortgage portfolio and 68.0% of the total amount of financed units. As of the end of 2016, Davivienda reached a total of 148,018 financed VISs and VIPs within a total of 219,082 financed units.
The Inter-American Investment Corporation (“IIC”) has been a strategic partner for Davivienda since 2011 when a revolving loan facility was approved for a total of US$30 million with terms of up to seven years. The IIC's resources contributed to reaching the development goals of Davivienda's SME portfolio.