Project detail - LA HIPOTECARIA S.A. DE C.V.

LA HIPOTECARIA S.A. DE C.V.

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Who is our client

Banco La Hipotecaria, S.A. is a privately owned Panama based bank that focuses on the financing of the residential housing mortgage segment in Panama and through subsidiaries in El Salvador and Colombia. As of June 2020, the bank has consolidated total assets of USD 925 million and its mortgage portfolio was distributed 74% in Panama, 16% in El Salvador and 10% in Colombia. Banco La Hipotecaria, S.A. and its subsidiary in El Salvador, La Hipotecaria S.A. de C.V. will both be borrowers of the facility.

Funding objective

This facility will be directed to the financing of affordable housing mortgages in Panama and El Salvador, targeting borrowers of middle and middle-low income, a segment that is underserved, supporting economic growth and reducing inequalities.

Why we fund this project

The facility encourages the expansion of access to financial services to the low and medium-low income segments of the Panamanian and Salvadorian communities, particularly needed after the Covid-19 emergency.

Environmental and social rationale

The Clients have been categorised as Category C in accordance with FMO’s Sustainability Policy. The Clients’ activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. As part of the transaction, La Hipotecaria will continue to comply with Panamanian and Salvadorian E&S laws and regulations.

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Date Total FMO financing
6/17/2021 USD 60.00 MLN
Website client
http://www.lahipotecaria.com
Region
Latin America & The Caribbean
Country
Panama
Sector
Financial Institutions
Signing date
6/17/2021
Total FMO financing
USD 60.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C