Azania Bank, Tanzania

USD 500,000 loan to Azania Bank Ltd who will add own funds and extend loans to Mwanza City Council, to provide financing for a resettlement and redevelopment scheme in the lakeside area. The purpose of the loan is to resettle low income households from the lakeside to serviced, well planned, titled plots inland, but near the lake, in phases, and the development and sale of lakefront property by the municipality for low, middle and high income residential users, as well as commercial facilities. The overall project will involve financing to Mwanza City Council to create around 2,400 serviced plots in the resettlement area (with the balance of municipal finance provided by Azania Bank). The loan was disbursed in February, 2010.

Affordable Mortgage and Loan Corporation (AMAL), Palestine

USD 1 million loan in one tranche. UN-HABITAT was requested to participate in the project by a consortium of major international financial institutions, providing senior debt to the structure (the “Financing Consortium”) including US Overseas Private Investment Corporation (OPIC), International Financial Corporation (IFC), Palestine Investment Fund (PIF), with credit enhancement being provided by United Kingdom’s Department for International Development (DFID) and other supporting investment by Aspen Institute’s Middle East Investment Initiative (MEII) and CHF International. UN-HABITAT loan provides capital necessary to establish the secondary lending operation, on which a USD 500 million affordable finance programme depends.

Loan is to the Palestinian Affordable Housing Association, SAKAN, a newly established Palestinian NGO, which will use proceeds to promote affordable and social housing initiatives, including making an investment in AMAL, a corporation being established under the Capital Markets Authority of the Palestinian Authority to provide secondary financing for affordable mortgage and Shariacompliant housing finance. Using long term funds from AMAL, local banks Bank of Palestine (BOP) and Cairo Amman Bank (CAB), Palestine branch will finance purchasers of 30,000 affordable housing units being developed by PIF and local real estate developers. Senior debt to AMAL of USD 500 million is being provided by OPIC, IFC, PIF, BOP, CAB, with DFID providing a USD 20 million first loss guarantee facility. MEII and CHF will be co-equity investors in AMAL. Agreement concluded in March 2010.

DFCU Bank, Uganda

USD 500,000 loan for 15 years to support construction of homes for community in Kasoli, Tororo Municipality, and to provide partial portfolio finance for long-term lending to purchasers of 125 affordable houses in Phase one and another 125 houses in Phase two. Borrowers are members of Kasoli Housing Association. Uganda government will provide Small and Medium Enterprise lending programme for new homeowners (income stabilization programme) and provide technical assistance in development of housing designs. Government and DFCU will form steering committee to supervise home construction. Municipality will put in infrastructure, including roads, electricity, and negotiate with national water company for providing water access. Loan Agreement signed in March 2010.

Habitat for Humanity International Nepal

Habitat for Humanity International’s branch in Nepal has established a Save & Build programme, consisting of providing a package of building technical assistance and housing finance to groups of 8 to 12 low income families at a time, for incremental building and renovation. Habitat for Humanity International Nepal has requested from UN-HABITAT a loan of USD 250,000 equivalent in Nepalese rupees to finance extensions of credit to 15 credit cooperatives/ village banks, which in turn will on-lend to Save & Build groups. UN-HABITAT loan would enable Habitat for Humanity International Nepal to extend its current activities to new communities. Agreement concluded in March 2010.

Laos mortgage programme

UN-HABITAT would partner with International Finance Corporation to provide long term financing to banks in Laos interested in developing a mortgage product. The objective of the project would be to promote the establishment of a sustainable housing finance market in Laos, accessible to mid and low income urban households. Banks that have expressed interest to participate in this project are Lao Development Bank and Phongsavanh Bank.

Programa de Desarrollo Local (PRODEL), Nicaragua / Panama

USD 500,000 loan to PRODEL to finance ongoing infrastructure development, secondary lending to local microfinance institutions and secondary lending to support microfinance housing loans in up to 16 small to medium-sized regional cities in Nicaragua and Central America. Due diligence process has been completed. Agreement concluded in March 2010.