The Project consist of the issuance by Banco de Comercio's of a mortgage-backed security (the "Bond Issue") for an amount of US$50 million. The Bond Issue will benefit from an IDB partial credit guarantee ("PCG") of up to US$20 million (40% of the Bond Issue). Proceeds from the Bond Issue will contribute to the funding of Banco de Comercio's mortgage lending program. The PCG will provide an external credit enhancement to the Bond Issue in order to obtain the required credit rating. Placement of this bond will: i) provide funding at terms consistent with the long-term nature of mortgage lending; ii) support the development of secondary mortgage markets; and iii) make available new investment opportunities to institutional investors.
Project Detail
Country
El Salvador
Project Number
ES-T1005
Approval Date
October 2, 2003
Project Status
Closed
Project Type
Technical Cooperation
Sector
FINANCIAL MARKETS
Subsector
FINANCIAL MARKETS
Lending Instrument
BID Invest
Lending Instrument Code
IIC
Modality
-
Facility Type
-
Environmental and Social Impact Category (ESIC)
-
Total Cost
USD 280,962.00
Country Counterpart Financing
USD 130,968.00
Original Amount Approved
USD 149,994.00