In the Dominican Republic there are more than 180,000 affordable homes under construction, works that have been initiated through the figure of the escrowwhich has democratized the construction of this type of property.
The information highlighted her Christian Molinaexpert partner in escrowbanking, real estate firm Ecija in the Dominican Republic, during his participation in the panel “Investor views on green bond financing, social and sustainable in the Latin American and Caribbean region “, developed last week in a round table convened by the European Investment Bank to discuss the benefits of thematic bonds.
Molina explained that a escrowin addition to being a legal mechanism with which one or more people (also companies) can create a patrimony as a result of the temporary transfer of their assets, it is also a vehicle to start invest and be financed with stock market instruments such as green bonds.
In this sense, the executive of the European firm said that the escrow It’s not something new in the country. relevant with this topic is to specify what the small credit institutions to use it to your advantage and increase your assets.
“It is a piece that helps those who have not swum (referring to those who do not know the stock market) to start getting their feet in the pool”Trust expert of the firm ECIJA.
He even pointed out that small companies that do not have the capacity to issue bonds can foster public-private partnerships to carry out a joint offer, through a escrow.
As examplecited the case of investors in renewable energies, each one with their land to develop a project, which can come together to create a escrowand, through the figure, issue a green bond to obtain resources and start the work.
The same happens with the financial sector. So much savings and credit associations as savings associations they can carry out “zero flow” securitizations such as the credit portfolio, in this case the mortgage, to increase their liquidity.
Molina ended his participation by advocating that the actors in the sector can make viable alternatives so that medium-sized companies can also be incorporated.
Objective of the round table
The event held at the Central Bank and in which the main personalities of the Dominican stock marketwas made by european bank Investment Bank (EIB) together with Frankfurt School of Finance & Managementthe Financial Initiative of the United Nations Environment Program (UNEP FI), the Superintendence of the Securities Market of the Dominican Republic and the Central Bank, with support from the European Union.
The table has as aim identify the opportunities and challenges in the issuance of green, social and sustainable bonds for financial institutions in the micro, small and medium-sized enterprises (MSMEs) sector in the Dominican Republic.
