Company name
N/A
Project number
11501-03
FI-3 operations are those where the risk potential is considered low: the FI’s current or future portfolio consists of financial exposure to business activities that predominantly have minimal or no adverse environmental and social impacts.
E&S category
FI-3
Country
Colombia
Sector
Financial Institutions
Status
In implementation
Disclosed date
03/28/2019
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
11/06/2019
Approval date
11/06/2019
Signed date
05/29/2020
Sponsoring entity
La Hipotecaria Compañía de Financiamiento S.A. (“LHCF”)
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 15,705,900
Currency
COP
Project scope and objective
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.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
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(292) 623-3952.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW
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