First Jamaica is yet to obtain a commitment from the International Finance Corporation on its proposed corporate loan of US$25 million, a portion of which may incorporate quasi-equity of up to $7.5 million, chairman Maurice Facey said Tuesday.

According to the IFC's website, the loan may be considered by the IFC board on June 25, and is being sought to allow First Jamaica to pursue real estate development projects as they materialise, both in Jamaica - primarily Kingston - as well as other Caribbean countries and Central America.

The proposed project, said the IFC in its summary of investment, will help address the strong demand for modern middle income housing as well as develop and upgrade high quality commercial and retail space in Kingston.

"Increased development and investment by the company is expected to send a positive signal, encouraging other developments on the island, which has seen few developments over the last decade, creating a demonstration effect and contributing to the overall community development in Jamaica," said the IFC site.

The Washington-based agency justifies its funding of real estate investments in developing countries by arguing that developers have mainly been using construction financing as opposed to long-term financing, which is often scarce.

The IFC reasons that its provision of longer term funds is a better match for the long-term cashflows of commercial property.

keith.collister@cwjamaica.com