Delta Credit

completed

The project involves extending a secured line of credit to DC to provide housing finance to Russian retail clients. Specifically, IFC would provide a 10 year, fixed rate loan to fund the origination of mortgage loans denominated in US dollars or in rubles, with payments linked to US$. DC, which is the leading company for mortgage lending in Russia, would use the loan proceeds to on-lend to Russian families via its own origination network, or via Russian banks which: (i) pass DC''s comprehensive audit review, and (ii) are trained in DC''s credit underwriting process (Qualified Banks). With long term funding from DC, the Qualified Banks would originate long term fixed rate US dollar denominated/linked mortgage loans, secured by properties in Russia to borrowers who meet DC''s underwriting criteria . The Qualified Banks and the properties securing the mortgage loans, are currently based in the Greater Moscow and St. Petersburg areas. The proposed investment would represent IFC''s entry into the Russian housing finance market, a crucial building block of the Russian financial sector. The project will have a significant developmental impact for several reasons: first, since housing finance provides a substantial benefit to social sector development, the project will contribute to the growth of Russia’s nascent mortgage finance market. It will also help increase the mobility of the labor force by alleviating the difficulties faced in finding suitable and affordable housing. The project will also result in the creation of jobs in construction and its downstream economies. Lastly, IFC’s credit line will stimulate the ability for the company to obtain funding from external sources in the future.