[China Co-Financing Fund] IDB administers $25 million loan from CHC to BSEC for Mortgage Securitization Partnership

Project narrative

On 29 May 2015, the Inter-American Development Bank (IDB) signed three loan contracts with Brazilian Securities Companhia de Securitização (BSEC) for a Mortgage Securitization Partnership, through which the IDB would provide 50 million USD from its ordinary capital (Loan 3309A/OC-BR), and the People's Bank of China would provide 25 million USD (Loan 3309/CH-BR) via the China Co-Financing Fund for Latin America and the Caribbean (CHC). The IDB would also administer a B loan (Loan 3309B/OC-BR) for an amount up to 50 million USD with resources that would be contributed by commercial banks or other financial institutions. All of the loans have a maturity of 7 years. According to reports from Brazilian Securities, as of 30 September 2016, 40 million USD had been disbursed from the A loan, but financing from the B loan had not yet been secured. The IDB approval date for this loan financing was 29 October 2014, and it refers to this project as "BR-L1410 : Brazilian Securities Mortgage Securitization Partnership". The purpose of the project is to support acquisition and subsequent securitization of residential and commercial mortgages by BSEC. This is intended to, consequently, increase the access to liquidity by private mortgage originators in Brazil, as well as contribute to the continued development of real estate credit securitization in Brazil's capital markets. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526.