First market-wide mortgage origination platform in country will make homes more affordable

WASHINGTON--(BUSINESS WIRE)-- Affordable home ownership in Guatemala received a boost following the approval of $100 million in financing by the Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution. The project will establish the country’s first multi-bank, market-wide mortgage platform, generating approximately 2000 mortgages and offering Guatemalans more affordable loans than those currently available.

Through an established network of banks, Mercury Mortgage Finance-Guatemala Ltd. will use the OPIC financing to provide long-term, U.S. Dollar mortgages to low- and middle-income home buyers in Guatemala. Mercury will also periodically securitize the mortgage loans and issue mortgaged-backed notes in Guatemala, El Salvador, Honduras, Costa Rica, Panama and Colombia.

Guatemala currently faces a housing deficit of more than one million homes. Local banks rely heavily on short-term deposits to fund their longer-term mortgage portfolios and predominantly offer local currency, floating rate loans for no more than 10 to 15 years. They also tend to overlook the lower-income market segment.

“By filling a gap in housing finance for low- to middle-income families, this project enables Guatemala’s mortgage industry to make an important leap forward. The entry of Mercury Mortgage Finance-Guatemala into the market will mean more affordable housing loans than are currently available,” said OPIC President and CEO Elizabeth Littlefield. “That in turn will encourage property developers to increase the supply of new housing units, so the multiplier effect of this project will extend to construction firms and suppliers of materials and appliances, creating much-needed jobs in the process.”

The U.S. sponsors of the project are Hencorp Becstone, LLC, an independent investment banking and asset management group based in Florida, and the Eduardo Solorzano Family Trust. Local sponsors include Ramon Campollo, Juan Buitron and Grupo Financiero de Occidente.

OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.

CONTACT:

OPIC
Timothy Harwood, 202-336-8744

KEYWORDS:   United States  North America  Central America  District of Columbia  Guatemala

INDUSTRY KEYWORDS:   Public Policy/Government  Other Government  Public Policy  White House/Federal Government  Professional Services  Banking  Finance  Construction & Property  Residential Building & Real Estate

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