Sovereign social bond issued by Ecuador with support of IDB provides access to social and public housing

Ecuador issued the world’s first Sovereign Social Bond, backed by a guarantee from the Inter-American Development Bank (IDB). The issuance of US$400 million will generate access to decent and affordable housing for more than 24,000 medium- and low-income families, and will mobilise close to $1.35 billion in investments in the country’s housing sector.

Misión Casa para Todos seeks to guarantee the right to decent and safe housing. Currently, more than 800 projects of social and public interest are under construction. The bonds proceeds will be used to provide mortgage loans at a preferential interest rate of 4.99% through the Ecuadorian financial system and a securitization scheme.