EC-L1150 : Mutualista Pichincha: Social Housing Project in Ecuador

The project¿s objective is to increase access to credit for the construction and purchase of low-income housing (LIH) in Ecuador and thus help reduce the country¿s quantitative housing deficit. To achieve this objective, the IDB will provide a senior secured loan of up to US$18.0 million to the Asociación Mutualista de Ahorro y Crédito para la Vivienda ¿Pichincha¿ [¿Pichincha¿ Mutual Savings and Loan Association for Housing] (Mutualista Pichincha), consisting of an A loan for up to US$10 million to be financed by the IDB and a B loan for up to US$8.0 million to be financed through the sale of shares to commercial lenders. The loan proceeds will be channeled to expand: (i) Mutualista Pichincha¿s low-income housing loan portfolio through loans intended for the purchase of new LIH type homes; and (ii) Mutualista Pichincha¿s comercial loan portfolio through loans targeting builders focused on increasing the supply of LIH projects.