Proparco and Banco BHD support Dominican women's access to affordable housing
published on 19 December 2024
Dominican Republic
Through Banco BHD, the subsidiary of the French Development Agency earmarked EUR50 million for the financing of first homes for middle and low-income women.
Proparco, a subsidiary of the French Development Agency (AFD), and Banco BHD signed a EUR50 million financing agreement that will benefit more than 700 middle and low-income Dominican women for the acquisition of first homes worth less than RD$5 million through fixed-rate long-term loans.
Proparco, a subsidiary of the French Development Agency (AFD), and Banco BHD signed a EUR50 million financing agreement that will benefit more than 700 middle and low-income Dominican women for the acquisition of first homes worth less than RD$5 million through fixed-rate long-term loans.
Through this partnership, Proparco and Banco BHD will contribute to reducing socioeconomic and gender inequalities. In the Dominican Republic, the housing deficit is estimated at more than one million units, and women currently account for 37.5% of the country's bank loans. This operation is fully in line with the Dominican government's public policy of promoting access to decent housing for the most vulnerable families.
Emmanuelle Riedel-Drouin, Proparco's Director of Financing, stated that “Proparco is proud to strengthen its historic alliance with Banco BHD, a key player in the banking sector for more than 50 years, through an innovative operation in the women's mortgage segment, the first of its kind in the Dominican Republic. This financing with a strong social impact will enable the Bank to strengthen its support to Dominican women with low and middle incomes so that they can acquire a decent home and improve their living conditions.”
Steven Puig, president of Banco BHD, affirmed that “this agreement with Proparco is part of a common social commitment to contribute to the economic growth of our Dominican Republic and in particular to Dominican women so that they can have a decent home. Through this project, we support women as their bank of reference in the country and make clear our responsibility towards gender equity and equality”.
Ruurd Brouwer, Chief Executive Officer of TCX, stated that ''this is a transaction of great impact. Not only is the financing being used to provide loans to low-income women to enable them to purchase a home, but the financing is also free of foreign exchange exposure. TCX collaborated with BHD and Proparco to hedge the EUR 50 million loan in local currency, ensuring that the borrower is not affected by the volatility of the Dominican peso exchange rate. For TCX, this is the most significant and longest duration transaction we have undertaken in Dominican pesos so far. It helps establish a pricing benchmark for Dominican peso financing and supports the development of the local capital market, in line with TCX's mandate of additionality and impact. We look forward to continue working with BHD and Proparco to improve financing conditions for borrowers in the country.”
This cooperation agreement is aligned with Proparco’s strategy priority focus of reducing socioeconomic, gender and territorial inequalities; and with Banco BHD’s Responsible Banking, sustainability and gender strategies, which has a long-term commitment to meeting international environmental and social standards. The initiative will contribute to the achievement of several Sustainable Development Goals (SDGs): #1, No Poverty; #5, Gender Equality; #9, Industry, Innovation and Infrastructure; and #10, Reducing Inequalities.
Valéry Vicini, Proparco’s regional director in Santo Domingo; Virginie Díaz, the French Development Agency’s (AFD) director in the country, and other executives of these entities were present during the ceremony to celebrate the signing of the agreement.
