Santo Domingo/Washington, D.C., December
12, 2012—IFC, a member of the World Bank Group, today announced a
five-year, local-currency loan of 195 million Dominican pesos (approximately
$5 million) to Asociación La Nacional to provide mortgage lending for low-
and middle-income housing as well as financing for small businesses in
the Dominican Republic.
The investment is aligned with the World Bank and IFC’s Country Partnership
Strategy in the Dominican Republic, which aims to support sustainability
and promote access to finance. It is also aligned with IFC’s Caribbean
strategy to promote economic development through financial inclusion.
“Providing housing loans to low- and middle-income individuals is our
mission, especially for those outside large urban centers across the Dominican
Republic,” said Francisco Melo, Vice President of La Nacional. “With
IFC’s support, La Nacional will be able to grow its business in a market
where commercial banks operate primarily in the largest urban areas and
tend to focus on middle- to upper-income individuals.”
“The housing sector in the Dominican Republic is behind other Latin American
peers, particularly the low- and middle-income segments, where access to
finance has been insufficient,” said Jun Zhang, IFC Regional Manager for
the Caribbean. “IFC’s financing to La Nacional will help expand their
loan portfolio to low- and middle-income individuals and will positively
impact the development of the domestic capital market.”
The investment is funded with proceeds from the IFC Taino Bond, issued
earlier this month. The bond is IFC's first domestic issue in the Dominican
Republic and raised 390 million Dominican pesos (approximately $10 million).
It is also the first IFC bond in Latin America and the Caribbean whose
proceeds are directly linked to investments in the local private sector,
creating access to local-currency financing while providing a viable channel
for domestic savings to be directed into productive, long-term investments.
Over the last three years, IFC invested $638 million in the Caribbean.
In 2011 alone, IFC created over 28,000 jobs in the region and reached more
than 130,000 patients, 2,300 students, and 4 million customers through
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
About La Nacional
La Nacional was founded in 1972 and is the largest Asociación in
the Dominican Republic. Initially focused solely on providing mortgage
loans for low-income housing, it has diversified its scope of products
since 2003, offering commercial loans, particularly to small and medium
enterprises and consumer loans. La Nacional is headquartered in Santo Domingo
with 48 branches, among which 23 are located outside of the province of
Santo Domingo, with presence in the north, east and center of the country.