IFC proposes $250m debt investment in India’s mortgage financier HDFC

Photo: Vivek Prakash/ Bloomberg

World Bank Group member International Financial Corporation (IFC) has proposed a $250 million senior debt investment in Housing Development Finance Corporation (HDFC), India’s largest mortgage financier.

In a disclosure, IFC said the loan proceeds will be used to provide retail buyers financing for affordable housing with a mutually agreed portion of IFC funding to be earmarked for green affordable housing.

HDFC, which is listed on India’s BSE Ltd. and the National Stock Exchange (NSE Ltd.), is the first specialised housing finance company in India.

Incorporated in 1997, it is involved in providing finance to individuals and developers for the purchase, construction, development, and repair of houses and commercial properties in India.

According to IFC’s disclosure, HDFC has financed over 8.1 million units cumulatively to date. It has also evolved into a financial conglomerate with subsidiaries and associates in financial services segments such as banking, insurance, and asset management.

Last year, the Insurance Regulatory and Development Authority of India (Irdai) approved HDFC’s 51.2% acquisition of Apollo Munich Health Insurance, a joint venture between Apollo Hospitals and German reinsurer Munich Re Group.

IFC said its proposed A-loan is in line with the Government of India’s “Housing for All by 2020” initiative, IFC said.

“The most significant, expected project-level outcome is increased access to financing for affordable housing for lower and middle-income segments,” according to the international lender.

The proposed investment will also support HDFC in gradually growing its nascent green housing portfolio. On the non-financial aspect of the investment, IFC aims to provide knowledge and capacity building to develop HDFC’s sourcing capabilities and pipeline development activities.

“IFC anticipates that the investment, together with other IFC’s efforts in the segment, will help promote greater competitiveness in affordable housing financing via demonstration and replication channels,” it added.

HDFC currently has a distribution network of 593 interconnected offices in India. It also has three representative offices in Dubai, London, and Singapore offering home loan products to non-resident Indians and persons of Indian origin.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.