Banco Davivienda, a leader in financing for Colombia’s housing market, has secured a $200 million USD senior loan to finance mortgages from IDB Invest, the private sector investment arm of the regional Inter-American Development Bank (IDB).
Specifically, Davivienda will use the funds to provide financing for mortgage loans within two public housing development programs in Colombia, Social Interest Housing (VIS) and Priority Interest Housing (VIP).
The institution’s loan to the Bogotá-based bank has a period of up to 5.5 years with a single payment at maturity.
“The IDB Invest loan will allow Banco Davivienda to increase the reach of its operations, particularly the financing of VIS, a segment that requires longer repayment periods,” said IDB in a statement.
The group added that, while the country has “achieved a significant reduction in housing deficit indicators in recent years,” many Colombians still lack access to “adequate housing finance.”
The Washington-based regional development bank added that “increasing mortgage offerings and establishing a robust housing finance system that facilitates access to formal housing is a priority for the country.”
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