Proposed Senior Unsecured Loan DFCC Vardhana Bank Housing Finance Project

Date: August 2012
Country:
Subject:
Document Type: Reports and Recommendations of the President
Project Number: 46912-014

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Description

The report and recommendation of the president for the proposed senior unsecured loan to DFCC Vardhana Bank (DVB) for the Housing Finance Project in Sri Lanka provides terms and conditions for the approval of ADB's Board of Directors.

The project entails the provision of long-term funding of $15 million to enable DVB to provide mortgages to borrowers to purchase affordable housing and to rehabilitate existing homes. The project has geographic targets to support rehabilitation in the North, East, and South. To strengthen the banking sector and enhance ADB’s developmental impact, DVB will also be participating in ADB’s existing TA for Housing Finance Capacity Development in South and Southeast Asia to further strengthen its mortgage loan origination and servicing capacity. This will be the ADB Private Sector Operations Department’s first housing finance transaction in Sri Lanka.