Summary of Proposed Investment
Project Number
11546
Company Name
BALTIC AMERICAN ENTERPRISE FUND
Date SPI Disclosed
May 2, 2002
Country
Central Europe Subregion
Industry
Financial Markets
Projected Board Date
Jun 7, 2002
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Jun 25, 2002
Signed : Oct 17, 2002
Invested : Jan 10, 2003
Project Description
The project will be a four-year revolving warehouse line of credit to BalAEF to expand its mortgage finance activities in the Baltics. BalAEF will use the loan to originate affordable residential mortgage loans so as to build the volume needed to eventually securitize its mortgage loan portfolio for sale on the international market. BalAEF intends to play a role in the development of a secondary mortgage market in these countries and has asked for IFC''s help in establishing a regional mortgage backed securities funding program.
Demand for mortgage lending in the Baltics is growing, but is limited by a shortage of term financing. The project will strengthen the balance sheet of one of the leading mortgage finance institutions in the region and serve as a market model for providing affordable mortgage loans to individuals. The project will thus help to develop the primary mortgage market in the Baltics and, by providing affordable housing finance, ultimately improve living standards.
IFC’s participation in the project will help to introduce warehouse financing to the Baltics. Moreover, IFC would use its global expertise to kick start the development of a regional secondary market for mortgage loans in the Baltics, which would provide a commercially viable refinancing vehicle for mortgage originators.
Demand for mortgage lending in the Baltics is growing, but is limited by a shortage of term financing. The project will strengthen the balance sheet of one of the leading mortgage finance institutions in the region and serve as a market model for providing affordable mortgage loans to individuals. The project will thus help to develop the primary mortgage market in the Baltics and, by providing affordable housing finance, ultimately improve living standards.
IFC’s participation in the project will help to introduce warehouse financing to the Baltics. Moreover, IFC would use its global expertise to kick start the development of a regional secondary market for mortgage loans in the Baltics, which would provide a commercially viable refinancing vehicle for mortgage originators.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Rich Sheridan, President & CEO
Baltic-American Enterprise Fund
170 Jennifer Road
Suite 250
Annapolis, Maryland 21401
Baltic-American Enterprise Fund
170 Jennifer Road
Suite 250
Annapolis, Maryland 21401