Home Mortgage Bank Partners with IDB Invest to issue the First Social Bond in Trinidad and Tobago and the Caribbean Region.
Home Mortgage Bank (HMB) has partnered with IDB Invest, a member of the IDB Group to issue the first Social Bond within Trinidad and Tobago and the Caribbean Region. The Bond was issued for TT$300 million with a tenor of five (5) years. This represents the second local currency transaction completed between HMB and IDB Invest with a cumulative value of TT$550 million.
HMB’s Social Bond is aligned with the Social Bond Principles (SBP) published by the secretariat of the International Capital Market Association (ICMA). HMB received an “Aligned” rating for its methodical framework from Standard and Poor’s, an external consultant specializing in Thematic Bond issuances.
About the Social Bond
A Social Bond is an investment instrument created to facilitate the eradication/mitigation of social challenges. HMB’s Social Bond is aligned with the Social Bond Principles (SBP) and the United Nations Sustainable Development Goals (SDGs). The bond issuance will contribute towards the housing finance market in Trinidad and Tobago and aligned with the following SDGs goals:
- Reduced inequities
- End poverty in all its forms everywhere
- Make cities and human settlements inclusive, safe, resilient and sustainable
- Decent work and economic growth
- Climate action
The Social Bond will be used exclusively to purchase mortgages from the Trinidad and Tobago Mortgage Finance Company (TTMF) subsidized mortgage portfolio. These are mortgages originated under the Government of Trinidad and Tobago’s 2% and 5% programmes. This initiative supports TTMF’s financing of houses to persons with low-and middle-income. This segment of the market remains an emphasis for the Government of Trinidad and Tobago as persons within these income levels continue to face challenges accessing funding within traditional financial institutions.
Green Financing Opportunities
HMB will also receive technical assistance from IDB Invest to develop a sustainable finance strategy and an Environmental and Social Management System. Our teams will conduct a market study for green housing to identify opportunities locally for both mortgages and the capital markets.
This initiative will foster a sustainable approach to the delivery houses in Trinidad and Tobago and an expansion of investment opportunities for local investors.
CEO HMB
Acting CEO of HMB, Brent McFee, commented, “the Social Bond is a landmark deal and a first within the Caribbean. I am confident of the numerous socio-economic benefits it would provide to persons and by extension development of Trinidad and Tobago.
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.”
CEO IDB Invest
“At IDB Invest we are very proud to further our relationship with Home Mortgage Bank, where on this occasion we have executed the first social bond, with a non-bank financial institution in Trinidad and Tobago. The bond is a local currency issuance under the laws of the Republic of Trinidad and Tobago. The deepening of the partnership with RBC Caribbean and Home Mortgage Bank further increases the access to housing financing for lower and middle-income families and individuals in Trinidad and Tobago,” said James Scriven, CEO of IDB Invest. “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.”
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.6 billion in asset management and 387 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Home Mortgage Bank
Established in 1985, HMB is a regulated, systemically important, non-bank financial institution, supervised by the Central Bank of the Republic of Trinidad and Tobago. It is the only privately-managed mortgage institution, specifically established by an Act of Parliament in the legislature to facilitate the creation of a secondary mortgage market in the country and provide market liquidity through the purchase of mortgages from primary mortgage market financial institutions in Trinidad and Tobago. HMB is also regulated by the Trinidad and Tobago Securities and Exchange Commission, the securities regulator of the country, which governs its debt-raising capabilities in the domestic capital markets, the review of its collective investment schemes, and the continuous disclosure of its management and audited financials to the investing public in Trinidad and Tobago.
