SANTO DOMINGO.- Proparco, a subsidiary of the French Development Agency (AFD), and Banco BHD signed a financing agreement for US$50 million aimed at more than 700 Dominican women of middle and low incomes for the acquisition of their first home for a value of less than RD$5 million through loans with fixed interest rates and long term.
With this alliance, Proparco and Banco BHD will contribute to reducing socioeconomic and gender inequalities. In the Dominican Republic, the housing deficit is estimated at more than one million units, and women currently account for 37.5% of the country's bank loans. This operation is fully aligned with the Dominican government's public policy, which promotes access to decent housing for the most vulnerable families.
Emmanuelle Riedel-Drouin, Proparco's Finance Director, stated that "Proparco is proud to strengthen its long-standing alliance with Banco BHD, a key player in the banking sector for over 50 years, through an innovative operation in the mortgage segment for women, the first of its kind in the Dominican Republic. This financing, with its strong social impact, will allow the Bank to reinforce its support for low- and middle-income Dominican women so they can acquire decent housing and improve their living conditions.".
Luis Lembert, Vera Jiménez, Steven Puig, Valery Vicini, Virginie Díaz, and Fredy Simó. (EXTERNAL SOURCE).
Steven Puig, president of Banco BHD, stated that “this agreement with Proparco is part of a shared social commitment to contribute to the economic growth of our Dominican Republic, and in particular to Dominican women, so that they can have access to decent housing. Through this project, we support women as their leading bank in the country and demonstrate our commitment to equity and gender equality.”.
Ruurd Brouwer, Chief Executive Officer of TCX, stated, “This is a high-impact transaction. Not only is the financing being used to provide loans to low-income women so they can purchase homes, but it is also free from currency risk. TCX collaborated with BHD and Proparco to hedge the €50 million loan in local currency, ensuring that the borrower is not affected by the volatility of the Dominican peso exchange rate. For TCX, this is the most significant and longest-term transaction we have undertaken in Dominican pesos to date. It helps establish a pricing benchmark for Dominican peso financing and supports the development of the local capital market, in line with TCX’s mandate of additionality and impact. We look forward to continuing to work with BHD and Proparco to improve financing conditions for borrowers in the country.”
This cooperation agreement aligns with Proparco's strategic priority of reducing socioeconomic, gender, and territorial inequalities, and with Banco BHD's Responsible Banking, Sustainability, and Gender strategies, which demonstrate a long-term commitment to international environmental and social standards. The initiative will contribute to achieving several Sustainable Development Goals (SDGs): #1, No Poverty; #5, Gender Equality; #9, Industry, Innovation and Infrastructure; and #10, Reduced Inequalities.
During the ceremony celebrating the signing of the agreement, Valéry Vicini, regional director of Proparco in Santo Domingo, was present, along with Virginie Díaz, director of the French Development Agency (AFD) in the country, and other executives from these entities.
About Proparco
Proparco, a subsidiary of the Agence Française de Développement, has been working alongside private sector stakeholders for over 45 years to build a fairer and more sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to develop sustainable solutions to environmental and social challenges in Africa, the Middle East, Asia, and Latin America.
Proparco has sector-specific expertise, a diversified range of financial tools tailored to different stages of business development, particularly through its subsidiary Digital Africa, and a technical support offering, Propulse, to amplify the impact and performance of its partners. With its new 2023-2027 strategy, Acting Together for Greater Impact, Proparco is exploring, strengthening, and expanding the ways it works with its partners.
