The Argentine Mortgage Company

completed

Summary Of Project Information (SPI)Project NameArgentina - Argentina SMMC RegionLatin America and CaribbeanSectorProject No009781Projected Board DateOctober 21, 1999Company NameSecondary Mortgage Market Company (SMMC) and Banco Hipotecario, S.A. (BH)Technical Partner and/or Major Shareholders The principal sponsor of the project is Banco Hipotecario (BH). On June 30, 1999 BH had total assets of US$5.0 billion. With a singular focus on mortgage lending, BH holds 40% of outstanding Argentine mortgage debt through its portfolio of US$3.6 billion, and controls 30% of new originations in the country. BH is strongly capitalized, has no deposit base and only 24 branches. BH was privatized in January 1999 and is now controlled by an entrepreneurial investor group that is keen to build on the bank''s strengths and its growing reputation for innovative mortgage backed securities. Project Cost Including proposed IFC investment The total project cost is estimated at US$1.55 billion. IFC''s investment will consist of (i) an equity investment of up to US$50 million for up to 20% of the equity capital of the new SMMC (with a put back to the sponsors); (ii) a credit enhancement commitment of up to US$100 million to support a US$1 billion IFC-led funding program for the SMMC''s first two years of operations and (iii) an IFC guarantee or loan of up to US$50 million to support a US$300 million financing package for BH. Location of project and Description of site SMMC will be headquartered in Buenos Aires. Description of Company and Purpose of Project The purpose of the project is to develop the Secondary Mortgage Market Company (SMMC). The SMMC will be a wholesale, second tier company, specializing in asset backed securitization for the mortgage and banking sectors, and for institutional investors. In addition to boosting the development of the local capital markets, the creation of the SMMC would improve credit quality and liquidity of mortgage assets. The SMMC would also offer important tools for bank liquidity and asset-liability management, which are critical for Argentina''s banking sector. Environmental Category and Issues Based on the available information, this is a category C project according to IFC''s environmental and social review procedure. No further environmental review is therefore required. Date SPI sent to InfoShop September 21, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384