Summary of Proposed Investment
Project Number
21476
Company Name
BALIKATAN HOUSING FINANCE, INC
Date SPI Disclosed
Nov 16, 2004
Country
Philippines
Industry
Financial Markets
Projected Board Date
Dec 17, 2004
Status
Completed
Sector
Secondary Mortgage Institutions
Department
Regional Industry - FIG Asia & Pac
Environmental Category
C - No Impact
Previous Events
Approved : Mar 23, 2005
Signed : May 30, 2005
Invested : Nov 10, 2005
Project Description
The National Housing Mortgage Finance Corporation (NHMFC) has approached IFC seeking support for its May 2004 auction of non-performing housing loans. The sale portfolio, consisting of 55,000 mortgages, has an outstanding principal balance of ~PHP 13.5 billion (about $240 million), equivalent to about 32% of NHMFC’s total portfolio of PHP42 billion ($750 million). The winning bidder of the May auction was Deutsche Bank Real Estate Global Opportunities Fund, a $360 million fund managed by Deutsche Bank.
Government agencies have dominated the low to medium-income housing sector in the Philippines, in both funding and origination. Because of resultant inefficiencies, and because of private banks’ focus on the medium to high end housing sector, there is significant unmet demand for low-income housing loans. The proposed transaction will be the first step in the Government’s effort to restructure NHMFC and the housing finance sector itself, an initiative to which the authorities attach great importance.
The purpose of the project/investment is for IFC to provide funding for the following components:
- assisting the purchase of the portfolio;
- the subsequent resolution of the assets; and
- the capitalization of the project-related entities (i.e., the Special Purpose Entity and the Servicer Company).
Government agencies have dominated the low to medium-income housing sector in the Philippines, in both funding and origination. Because of resultant inefficiencies, and because of private banks’ focus on the medium to high end housing sector, there is significant unmet demand for low-income housing loans. The proposed transaction will be the first step in the Government’s effort to restructure NHMFC and the housing finance sector itself, an initiative to which the authorities attach great importance.
The purpose of the project/investment is for IFC to provide funding for the following components:
- assisting the purchase of the portfolio;
- the subsequent resolution of the assets; and
- the capitalization of the project-related entities (i.e., the Special Purpose Entity and the Servicer Company).
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Inho Lee
F9-K238
2121 Pennsylvania Avenue, NW
Washington, DC 20433
Ph. 202-458-7507
F9-K238
2121 Pennsylvania Avenue, NW
Washington, DC 20433
Ph. 202-458-7507