MANILA, PHILIPPINES (18 March 2024) — The Asian Development Bank (ADB) and Lhoopa, Inc. have signed a loan agreement of up to $20 million to help deliver affordable housing for average-income earners in the Philippines, improving their quality of life and reducing the country’s housing shortage.
The financing will support Lhoopa’s capacity to acquire, renovate, construct, and sell affordable properties, sold at an average price of Php 850,000 (around $15,000) primarily to Filipinos in jobs such as drivers, security guards, factory workers, teachers, and office administrative workers. At least 25% of the homes 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,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “This will also be ADB’s first infrastructure project to use a revolving credit facility, allowing Lhoopa to repay the loan and withdraw it again as needed, without having to reapply for financing. This innovative facility is well suited for small-scale companies that are experiencing rapid growth.”
Quality and affordable housing is vital to build resilience to climate change. However, the Philippine government estimates that the housing shortage will reach 6.5 million by 2030. Around 90% of the houses needed are valued at below Php1.2 million, but local property developers tend to focus on mid- to high-end condominiums and township estates for wealthier urban dwellers. ADB’s support will contribute to Lhoopa’s goal of delivering up to 4,000 houses annually by 2025 and 8,000 by 2028.
Lhoopa uses a proprietary digital platform to identify areas with potential demand across the country. The platform also allows the company to engage over 100 local small-scale contractors for renovation and construction and over 4,000 local real estate agents to reach potential buyers, helping promote local employment.
“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,” said Lhoopa Founder Marc-Olivier Caillot.
Established in 2018, Lhoopa works closely with the state-owned Home Development Mutual Fund (PAG-IBIG), which was established to provide a national savings program and affordable housing financing. Lhoopa was the first nontraditional developer to be accredited by Pag-IBIG in 2020, and became one of the its top 20 developers in 2022.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.