ADB lends $20mln for affordable housing project in Philippines

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The Asian Development Bank (ADB) is extending up to $20 million worth of loans to Lhoopa Inc. to bankroll its affordable housing project in the Philippines.

The multilateral lender said the financing would fund Lhoopa's acquisition, renovation and construction activities in the country.

The housing units with an average price of P850,000 are targeted for Filipino drivers, security guards, factory workers, teachers and office administrative workers.

At least 25 percent of the units to be sold will be certified by Excellence in Design for Greater Efficiencies, an internationally recognized green building standard system.

'This is ADB's first private sector housing project in the Philippines, and Lhoopa is a fitting partner as it caters to people who are often unable to adapt to the impacts of climate change. The project not only provides livable spaces for these communities, but also enhances their climate resilience,' ADB director general for private sector operations Suzanne Gaboury said.

Gaboury said this would also be the ADB's first infrastructure project to use a revolving credit facility, which would allow Lhoopa to repay the loan and withdraw it again as needed, without the need to reapply for financing.

'This innovative facility is well suited for small-scale companies that are experiencing rapid growth,' she said.

The country's housing backlog is estimated at 6.5 million.

While around 90 percent of the houses needed are valued below P1.2 million, local property developers tend to focus on mid- to high-end condominiums and township estates, which cater to the wealthier segment of the market.

ADB's support is expected to help Lhoopa achieve its goal of delivering up to 4,000 houses annually by 2025 and 8,000 by 2028.

Established in 2018, Lhoopa is the first nontraditional developer to be accredited by the Home Development Mutual Fund, which was established to provide a national savings program and affordable housing financing.

Through a proprietary digital platform, Lhoopa is able to identify areas with potential demand across the country.

The property developer is also able to engage over 100 local small-scale contractors for renovation and construction, as well as over 4,000 local real estate agents to reach potential buyers through the platform.

'With the ADB facility, we will be able to provide thousands more of affordable homes to Filipino families. Having such an esteemed institution by our side puts us on a global stage and will allow us to apply our technological solutions on a larger scale, thereby impacting more lives in the process,' Lhoopa founder Marc-Olivier Caillot said.