IDB Invest, TTMB partner on $250m social bonds

IDB Invest has announced its support to TT Mortgage Bank Ltd (TTMB), in partnership with Republic Bank Ltd (RBL), by subscribing to social bonds totalling $250 million.

In a release, IDB said the funds will enable TTMB to expand its mortgage portfolio, focusing on middle and lower middle-income families, as well as women and women-led households.

This marks TTMB’s first thematic issuance and the second in the country.

The transaction was made through the subscription of senior secured social bonds in a Series One, providing TTMB with long-term financing while supporting the development of TT’s local capital markets.

The bonds adhere to the social bond principles of the International Capital Market Association (ICMA).

"The bond issuance will support TTMB’s financing of homes to citizens within low and middle-income segments through the government's subsidised mortgage programmes.

"Historically, citizens within these income levels continue to face gaps in accessing credit from financial institutions.

"Further, women are disproportionately affected due to barriers in accessing credit, pay gaps and the financial burden of leading one-third of households, increasing their risk of homelessness and insecurity," IDB said.

The issuance has received regulatory approval from the TT Securities and Exchange Commission and the Central Bank as an asset for inclusion in statutory funds.

As part of the preparation towards a thematic issuance, IDB Invest provided advisory services to TTMB to develop a social bond framework.

"This framework aligns with ICMA's social bond principles, defining eligibility criteria focused on affordable housing, including specific provisions for women and women-led mortgages," the release said.

IDB Invest also supported TTMB in engaging a second-party opinion (SPO) provider to ensure an independent assessment of the bond’s framework, integrity and impact monitoring.

In addition to financing, IDB Invest is collaborating with TTMB to establish a monitoring and reporting framework to track the bond’s impact, ensuring transparency and alignment with international best practices.

"This initiative exemplifies IDB Invest’s commitment to fostering financial innovation, fair opportunities and economic growth in the region," the release said.