Quick News Bit

HDFC raises $1.1-billion loan to finance affordable housing

India’s top mortgage lender Housing Development Finance Corp has secured the world’s biggest social loan, a $1.1 billion facility (around Rs 8,700 crore) to fund affordable residences, underscoring potential for sustainability-linked financing.

The package has been priced at a margin of 90 basis points over secured overnight financing rate. MUFG Bank Ltd. was the lead social loan coordinator and also one of the mandated lead arrangers and borrowers along with CTBC Bank Co., Mizuho Bank Ltd.,

and Sumitomo Mitsui Banking Corp., according to an statement.

“Affordable housing is a critical component of quality infrastructure as also a growth driver for the real estate industry and the economy at large,” said Deepak Parekh, HDFC chairman.

HDFC’s loan facility complies with international social loan frameworks that consistently certify, track and monitor the social impact of financing assets, the financier said. Use of proceeds, objectives and transparency are among the main principles of social loans, according to the Loan Market Association.

The credit line and HDFC’s stated objective is in line with a core pledge of Prime Minister Narendra Modi’s government, which has made “housing for all” a policy objective.

This is India’s largest social financing issuance, the largest social loan globally, the first social ECB loan out of India and the largest ECB loan deal from a Housing Finance Company/private NBFC in India, HDFC said in a release.

Since its inception in 1977, the largest mortgage lender by asset size in the country has financed 9.5 million (95 lakh) housing units and has a gross loan book of Rs 6.7 trillion.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment