The St. Lucia Development Bank (SLDB) has signed a US$20 million, or approximately EC$54 million, loan agreement with the Export-Import Bank of the Republic of China Taiwan. This major investment is aimed at expanding access to affordable housing for low- and middle-income Saint Lucians. The agreement, signed on Tuesday at the SLDB in the presence of Prime Minister, Philip J. Pierre, and Taiwan’s Ambassador to Saint Lucia, Nicole Su, represents the largest single financial facility undertaken by the Development Bank and the largest direct investment in housing in the country’s history, according to officials at the signing ceremony.
SLDB Chairman, Daryl Raymond, described the facility as more than a financial transaction. He highlighted its potential to address the country’s longstanding housing shortage. “This US$20 million concessionary line of credit is more than just a financial transaction,” Raymond said. “It represents a tangible demonstration of the friendship and diplomatic cooperation between the governments of St. Lucia and Taiwan.”
The facility is expected to support the purchase, construction, repair and improvement of homes, as well as infrastructure associated with residential development. SLDB Managing Director, Cornelius Sidonie, said the programme is expected to benefit more than 200 households. The financing includes a five-year grace period on repayment of principal, followed by 15 years for repayment. Sidonie said the structure of the facility provides what he described as “patient capital” to support development.
He said the bank intends to make the financing accessible to people who have historically struggled to secure housing loans through traditional financial institutions. “Those families are why we are here today.” Sidoni said.
According to SLDB officials, the bank intends to offer 100% financing for qualifying housing loans, while the government is expected to subsidize interest rates to help create competitive mortgage rates. Extended loan terms are also being considered to make repayments more manageable.
However, Sidonie stressed that affordability would not come at the expense of responsible lending, with applications subject to underwriting, risk oversight and technical assessments. The initiative comes against the backdrop of a significant housing shortage in Saint Lucia. Raymond cited estimates of a national housing deficit that has persisted for years, particularly affecting low- and middle-income households. Rising land prices, construction costs and limited access to financing have further complicated efforts by families to become homeowners.
Ambassador Nicole Su welcomed the agreement as another example of the longstanding relationship between Taiwan and Saint Lucia. “A dignified, safe and affordable home is much more than just a shelter,” Su said. “It offers families a haven of security and a healthy environment for our children.”
She said Taiwan viewed the initiative as an investment in social equity, economic development and national development, while reaffirming Taiwan’s commitment to continued cooperation with Saint Lucia.
Prime Minister Philip J. Pierre also emphasized the significance of the agreement, describing the EC$54 million investment as the largest direct investment in housing in Saint Lucia’s history.
Pierre said the financing should prioritize people who are underserved by the traditional banking system, rather than those who already have ready access to financing. “We have to fund those who are underserved,” the Prime Minister said, urging the Development Bank to consider applicants’ willingness, commitment and discipline alongside traditional financial measures.
Pierre said the government’s support for the facility reflects its confidence in the Development Bank and its leadership. He also called on the bank to maintain a balance between financial sustainability and its development mandate. “The philosophy cannot be profit only. It must be profit plus people,” Pierre said.
The Prime Minister also pointed to other government measures intended to encourage homeownership, including incentives related to stamp duty, land purchases and mortgage interest. He urged the Development Bank to ensure that borrowers are not placed under excessive financial burdens arguing that housing loans should be structured around what families can realistically afford to repay.
The loan agreement follows discussions initiated during Pierre’s 2022 state visit to Taiwan when affordable housing was raised as an area for bilateral cooperation. Officials said negotiations between the SLDB, the Taiwanese government and the Export-Import Bank subsequently led to the facility being finalized.
The new programme builds on the Development Bank’s existing housing portfolio. Sidonie said that since the institution’s inception in 2009, SLDB has approved more than 650 mortgages with over EC$113 million provided to Saint Lucian families for home construction and purchases.
The new facility is expected to extend that work to additional areas, including climate-resilient home improvements, photovoltaic systems, retaining walls and other infrastructure.
The signing ceremony concluded with officials describing the agreement as the beginning of the implementation process, with the ultimate goal of translating the financing into homes for Saint Lucian families.
Sidonie said the most important signatures associated with the facility had yet to come. “The signatures that matter most are still to come,” he said, referring to the signatures of Saint Lucian families on the deeds to their new homes.
The Development Bank is now expected to finalize the details of the housing package and begin rolling out the financing to eligible borrowers, with officials promising that the facility will be implemented carefully, responsibly and efficiently.
