The Home Mortgage Bank has partnered with IDB Invest to issue a Social Bond.
The Bond, which has been issued for $300 million with a tenor of five years, is the first of its kind in T&T and the Caribbean Region.
It also represents the second local currency transaction completed between HMB and IDB Invest with a cumulative value of $550 million.
HMB said in a media release.
HMB added the Social Bond is aligned with the Social Bond Principles (SBP) published by the secretariat of the International Capital Market Association (ICMA).
This it stated had received an “Aligned” rating for its methodical framework from Standard and Poor’s, an external consultant specialising in Thematic Bond issuances.
The bond is an investment instrument created to facilitate the eradication/mitigation of social challenges.
This issuance is geared towards the housing finance market in T&T and aligned with the following SDGs goals of reduced inequities and ending poverty in all its forms everywhere. Additionally, it is to be used to make cities and human settlements inclusive, safe, resilient and sustainable while also aiding in the development of decent work and economic growth and climate action.
HMB said the Social Bond will be used exclusively to purchase mortgages from the T&T Mortgage Finance Company’s (TTMF) subsidised mortgage portfolio.
This initiative will support TTMF’s financing of homes to persons with low-and middle-income as these mortgages include the government of T&T’s two per cent and five per cent programmes.
HMB noted that this segment of the market remains an emphasis for the T&T government as persons within these income levels continue to face challenges accessing funding within traditional financial institutions.
The partnership is also set to create green financing opportunities as HMB will also receive technical assistance from IDB Invest to develop a sustainable finance strategy and an Environmental and Social Management System.
HMB said in the release that its teams will conduct a market study for green housing to identify opportunities locally for both mortgages and the capital markets. This, HMB said will foster a sustainable approach to the delivery houses in T&T and an expansion of investment opportunities for local investors.
Acting CEO of HMB, Brent McFee, said, “I am confident of the numerous socio-economic benefits it would provide to persons and by extension development of T&T.”
“I am also excited about the possibilities for green/sustainable financing and the immense opportunity for Home Mortgage Bank and Trinidad and Tobago. It’s indeed a pleasure to partner with the team at IDB Invest to undertake these groundbreaking ventures,” McFee stated.
James Scriven, CEO of IDB Invest said, “In addition, it will promote the growth of the domestic capital markets and contribute to its economic development. Thanks to this financing, we once again reaffirm our commitment to promote development in the country.”