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MANILA, June 22, 2005—
The International Finance Corporation, the private sector arm of the World Bank Group, agreed to provide a 2.25 billion peso (approximately $41 million) eight year loan to Filinvest Land Inc., one of the leading housing development companies in the Philippines. It is the largest local currency financing to date by IFC to a Philippine company. The signing of the loan in Manila was witnessed by His Excellency Noli de Castro, Vice President of the Republic of the Philippines and Chairman of the Housing and Urban Development Coordinating Council.
The Philippines suffers from an acute and persistent housing shortage. IFC’s loan will contribute to increasing the availability of mortgage financing to more lower and middle income buyers in a market dominated by government-owned financial institutions and a commercial banks that are not capable of serving these households. As one of the premier housing development companies in the Philippines, Filinvest has been rapidly extending mortgage financing to homebuyers, including many unable to obtain mortgages from other sources. The loan will be supported by a technical assistance program, funded by IFC, to assist Filinvest in improving credit policies, loan management procedures and risk management systems in its mortgage operations.
“IFC is committed to encouraging more private sector participation in housing development and finance,” said Vipul Bhagat, IFC country manager. “Filinvest develops the housing stock while also providing affordable long-term finance to buyers.” Jyrki Koskelo, IFC’s director for Global Financial Markets, added, “Housing development companies often represent the only source of mortgage financing to many Philippine homeowners. This investment represents an innovative approach to mortgage financing by IFC by engaging with strong housing development companies such as Filinvest.”
Mercedes Gotianun, Chairman and CEO of Filinvest Land, said, “Filinvest sees mortgage financing as a strategic part of our business and we expect substantial future growth. We are pleased that IFC is supporting us in this effort with a significant investment.”
The mission of IFC
(www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
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