Casa Para Todos’ US$300 Million Financing

Hogan Lovells advised the Republic of Ecuador.

Ecuador issued a Sovereign Social Bond in the international markets for US$400 million, with Goldman Sachs as underwriter and placement agent. The issuance was backed by a partial guarantee of US$300 million from the Inter-American Development Bank (IDB), making the operation attractive for international investors and significantly reducing financial costs for Ecuador.

The issuance is earmarked to finance the government program Casa Para Todos, which aims to provide access to decent and affordable housing to medium and low-income families. The funds will be administered in trusts managed by private sector banks and serve as an anchor for a US$1.35 billion pool of funds administered by those banks to provide mortgage loans at a preferential interest rate of 4.99%. Currently typical mortgage lending rates in Ecuador are in excess of 10%, impeding access to affordable housing.

The Hogan Lovells team was led by New York Capital Markets partner Evan Koster (Picture), Regional Chief Executive for Asia Pacific and the Middle East Miguel Zaldivar and Miami Finance partner Gaston Fernandez. They were assisted by Miami-based International Energy Advisor Pedro Martinez Rubi, Miami senior associate Dana Turjman and New York associate Juan Moreno.

Involved fees earner: Gaston Fernandez – Hogan Lovells; Evan Koster – Hogan Lovells; Pedro Martínez Rubí – Hogan Lovells; Juan Moreno – Hogan Lovells; Dana Turjman – Hogan Lovells; Miguel Zaldivar – Hogan Lovells;

Law Firms: Hogan Lovells;

Clients: Republic of Ecuador;

Author: Ambrogio Visconti