IDB Invest announced its support to Trinidad and Tobago Mortgage Bank Limited (TTMB), in partnership with Republic Bank Limited (RBL), by subscribing to social bonds totaling 250 million Trinidad and Tobago dollars (approximately US$36.8 million). 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 1, providing TTMB with long-term financing while supporting the development of Trinidad and Tobago’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 of Trinidad and Tobago’s subsidized mortgage programs. 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.
The issuance has also received regulatory approval from both the Trinidad and Tobago Securities and Exchange Commission and the Central Bank of Trinidad and Tobago 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. 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.