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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Press Release

MIGA Helps Peru Enhance Access to Homeownership for Women and Vulnerable Populations

Also available in: Spanish
twitteremail

WASHINGTON, June 29, 2023– The Multilateral Investment Guarantee Agency of the World Bank Group (MIGA) has issued guarantees to J.P. Morgan Chase Bank, N.A. against the risk of non-payment of two loans to Fondo Mivivienda S.A. (FMV), a state enterprise owned by the government of Peru, for a period of up to six and a half years. One loan will be dollar-denominated for up to $150 million in principal. The second loan will be a Peruvian Sol (PEN) indexed loan for up to the PEN equivalent of $150 million. With this guarantee MIGA renews its support for FMV’s green mortgage programs, having issued a similar guarantee in 2022 to J.P. Morgan for a $290 million loan.

FMV will use at least 50 percent of the loan proceeds to continue financing My Green House Program and the remaining 50 percent will be used to finance inclusive housing for low-income and vulnerable populations. In addition, FMV will use at least 50 percent of the entire loan facility to provide mortgages to women.

“The MIGA-guaranteed loans will support FMV’s mission to promote inclusive homeownership through affordable social mortgages directed to underserved segments of the population,” said Hiroshi Matano, Executive Vice President of MIGA. “We will also contribute to Peru’s economic recovery by creating jobs in the housing and construction sectors in the country.”  

Mortgage access in Peru is limited, with housing loans representing 15 percent of overall credit in the country as of January 2023. Statistics from 2017 indicate that only 6.2 percent of the population had an outstanding mortgage. For the low-income population, only 2 percent of the bottom 40 percent have an outstanding mortgage.

“This new FMV operation guaranteed by MIGA is the result of a joint effort by all parties to continue promoting social and sustainable housing in Peru. We thank MIGA and J.P. Morgan Chase Bank for continuing to trust in Fondo Mivivienda and our programs to reduce the housing gap in Perú,” said Francisco Antonio Carbajal Zavaleta, president of the FMV Board of Directors. “Finally, I would like to highlight that this new agreement, apart from promoting sustainable housing, will allow us to focus our resources on low-income families and vulnerable populations as well as facilitate access to housing for women in our country,”

FMV has been successful in reaching near-parity in its lending to women and men. To maintain this parity, 50 percent of the new loan facility will be allocated for mortgages to women. In addition, as part of collaborative efforts between gender and climate initiatives, FMV will develop training materials and manuals for home energy efficiency trainings tailored to women homeowners. The materials will raise awareness of the financial benefits and potential savings resulting from home energy efficiency measures, as well as identifying actions that homeowners can take to reduce their energy use.

“With this dual-currency transaction, we continued to support Fondo Mivivienda’s efforts to address social inclusion and climate change in Peru. JPM remains committed to proving holistic solutions to truly complex problems encountered by our clients and partners,” said Geraldo Guanaes, Executive Director at JPM. 

ABOUT FMV

The Housing Promotion Mortgage Fund, Fondo Mivivienda, was created in 1998 to facilitate access to adequate, single-family housing, particularly for low-income families, through the concerted management between the government of Peru and the financial and real estate sectors, boosting their development.

From the creation of “Mivivienda Verde” in March 2015 to May 2023, a total of 34,422 credits have been granted with a green bond, disbursing 166 million soles and generating a significant impact on the promotion of sustainable housing in the country.

In addition, an offer of 99,718 certified eco-friendly units has been registered to date, distributed in 530 projects nationwide. Seventy-five percent correspond to homes located in districts of Metropolitan Lima and Callao and twenty-five percent in the rest of the country, where regions such as Lambayeque, Piura, Arequipa, Ica, and La Libertad stand out.

Along its history, the Fondo Mivivienda has demonstrated its commitment with the social development of the Peruvian population through the financial sector while maintaining near-parity in its lending to women and men, both in urban and rural areas of Peru.

 

ABOUT J.P. MORGAN

Information can be found at www.jpmorgan.com

 

ABOUT MIGA

MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders.

Since its creation, MIGA has issued over $70 billion in guarantees across 123 developing countries in support of more than 1,000 projects.

 

Contacts:

In Washington: 

Elizabeth Howton, (202) 458-5922, ehowton@worldbankgroup.org

For more information, please visit: https://www.miga.org

Stay updated via Twitter: https://twitter.com/MIGA

Follow us on LinkedIn: https://www.linkedin.com/company/wb-miga 

Also available in: Spanish
twitteremail