MicroVest invested USD5m in Panama-based mortgage lender Banco La Hipotecaria.
(MicroVest) To bridge the unmet demand for housing finance among lower and middle-income individuals and families, MicroVest has invested $5 million in Banco La Hipotecaria (BLH), a major provider of private mortgages in Panama, El Salvador and, Colombia. The investment seeks to boost affordable mortgage lending to help lower middle-class communities realize their dream of owning a home, which can serve as a strong foundation to build financial stability and improve wellbeing.
Founded in 1997, BLH offers products ranging from mortgages for new and existing homes to refinancings, home improvement loans, personal loans, insurance, and deposits. The company will finance up to 98% of a home’s value, which allows families to own property without worrying about a large down payment. All homes financed by BLH must pass stringent assessments to ensure their safety and appropriate connections to municipal infrastructure, such as paved streets, water and sewer systems, and the power grid.
This is MicroVest’s 5th investment cycle with BLH.