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Supporting access to women’s affordable housing in the Dominican Republic
Project
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Signature date
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Location
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Latin America and the Caribbean, Dominican Republic
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Financing tool
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Financing amount (Euro)
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50 000 000
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Customer
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BANCO MULTIPLE BHD LEON SA
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Type of customer
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Financial institution
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Country of headquarters
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Dominican Republic
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Project number
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PDO1072
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Environmental and social ranking
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IF-A
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has allocated €50 million of financing to Banco BHD to support its activity for women.
Client presentation
Founded in 1972 as a bank specialized in financing housing, Banco Hipotecario Dominicano (BHD) is today a commercial bank offering all the services of a universal commercial bank. BHD is the second largest privately owned financial institution in the Dominican Republic, with a market share of 17% in terms of universal commercial bank assets and a market share of 15% for mortgage loans. Since 2014, BHD has been launching initiatives for women, which are recognized by its peers and international organizations. For example, the bank offers a wide range of financial products and non-financial services specifically designed for women.
Project description
The project involves the allocation of a long-term subsidized senior credit line to Banco BHD (BHD) for an amount in DOP equivalent to €50 million. It will finance a mortgage loan portfolio for the acquisition of affordable housing by low- and middle-income women. As the credit line only targets women, the project is eligible for the 2X Challenge. The financing is in line with Proparco’s 2023-2027 Strategy, as it will contribute to reducing socioeconomic and gender inequalities.
Project impact
The expected impacts of this financing are as follows:
- Support for new or improved access to affordable housing over the next 5 years, benefiting more than 1,080 people. Proparco’s €50 million loan provides a response to the demand for affordable housing by financing 649 affordable housing units, through Banco BHD, which plays an important social role in the Dominican Republic by providing access to decent and formal housing for low- and middle-income groups
- Contribution to gender equality through a commitment to finance female-headed households (100% of Proparco’s financing), with a minimum of 50% of women single individual borrowers. Proparco’s financing is aligned with the 2X Challenge on the basis of the criteria 2 (Leadership), 3 (Employment), 5 (Products and services) and 6 (Portfolio).
The project will thereby contribute to the achievement of the Sustainable Development Goals (SDGs) #5 (Gender equality), #8 (Decent work and economic growth), #10 (Reduced inequalities) and #11 (Sustainable cities and communities).