Symbiotics, the leading market access platform for impact investing, has arranged its first Social Bond to be used for affordable housing and associated household financing, by means of a loan in local currency of COP 35,8 billion (USD 10,5 million) for La Hipotecaria Compañía de Financiamiento (“La Hipotecaria”).
Banco La Hipotecaria and its subsidiaries (“Grupo La Hipotecaria”) have been providing access to mortgage financing in Central America for 23 years, entering the Colombian market in 2011. As a mortgage provider, its mission is for individuals to own their residence and thus improve quality of life of tens of thousands of Latin American families through its product offering.
The proceeds of the Social Bond will be used to finance access to financing services, with its eligible subcategories: affordable housing and household financing. This is in line with the Colombian government’s affordable housing programs to support vulnerable and low-income families. This social bond will be used to finance beneficiaries of those programs and their household financing needs.
Sustainable Development Goals (SDG’s) addressed with this Social Bond:
This bond is issued via Symbiotics’ sponsored bond issuance platform (Micro, Small & Medium Enterprises Bonds S.A.) under its Sustainability, Social and Green Bond Framework, which was certified in December 2019 by DNV GL. The Social Bond will be listed on the Luxembourg Green Exchange within the Social Bond section. The Social Bond proceeds are to be fully used towards a 4.5-year, senior unsecured, local currency loan to La Hipotecaria
* * * * * * *
Symbiotics is the leading market access platform for impact investing, dedicated to financing micro- small and medium enterprises and low- and middle-income households in emerging and frontier markets. Since 2005, Symbiotics has structured and originated some 4,000 deals for over 450 companies in almost 90 emerging and frontier markets representing more than USD 5.5 billion. These investments have been purchased by more than 25 fund mandates and more than 50 third party specialized fund managers, forming a growing ecosystem and marketplace for such transactions.
About La Hipotecaria
Grupo La Hipotecaria is a regional financial institution dedicated exclusively to the origination and servicing of residential mortgage loans to middle and middle-low-income families, with a proven ability to securitize its mortgages when the need arises, in order to mitigate liability maturity mismatches or to meet the general funding needs of the institution. Grupo La Hipotecaria has more than 23 years of experience in mortgage financing, originating loans with sound credit policies, and has an excellent track record in capital markets, with more than 15 securitizations, recurring securities issues and a covered bonds program. As part of its growth strategy, the Group entered the Colombian market in 2011 through an unregulated enterprise called La Hipotecaria de Colombia S.A. In 2014, it became a credit institution specializing in mortgage lending, licensed and supervised by the Financial Superintendency of Colombia (Superintendencia Financiera de Colombia, SFC), through the company called La Hipotecaria de Financiamiento, S.A.lahipotecaria.com
* * * * * * *
For more information, contact:
Samy Derradji, Corporate Communication Manager, Symbiotics
Marta Alvarez, Manager Corporate Culture, La Hipotecaria