HDFC raises USD 1.1 billion via syndicated social loan facility

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HDFC raises USD 1.1 billion via syndicated social loan facility

The mortgage lender said it raised USD 1.1 billion around Rs 8,700 crore from a handful of investors under the Syndicated Social Loan Facility to cater to the affordable housing segment in the country.

The country's largest mortgage lender by asset size said it raised the amount by way of external commercial borrowings ECBs This landmark financing further promotes HDFC's longstanding mission to be the leading provider of housing in India. The company said in a release that proceeds from the social loan would go towards financing affordable housing loans.

MUFG Bank Ltd. MUFG is the lead social loan coordinator for this transaction along with being one of the Mandated Lead Arranger and Borrowers MLAB.

CTBC Bank, Mizuho Bank, the State Bank of India and Sumitomo Mitsui Banking Corporation are among the other MLABs and joint social loan coordinators.

This is India's largest social financing issue, the largest social loan in the world, the first ECB loan from a private NBFC in India, and the largest ECB loan deal from a Housing Company in India, HDFC said.

External Commercial Borrowings are instruments used by domestic entities to raise capital from overseas markets in Indian rupee or any other permitted foreign currency.

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

Affordable housing is a critical component of the quality infrastructure and is a growth driver for the real estate industry and the economy at large, given its strong links to nearly 300 industries. Deepak Parekh, Chairman of HDFC Ltd, said it contributes to capital formation, employment and income opportunities.

He said a boost to affordable housing will play a significant role in the 'Housing for All' objective of the government.

Every household has a desire to own a home. Parekh said that housing will play an important role in India as a catalyst for growth with increased demand for affordable housing.

HDFC terms the social loan as a 'landmark financing' which promotes the company's longstanding mission to be the leading provider of housing in India.

More than 314,000 beneficiaries, mostly in affordable housing, have been assisted by the company under the CLSS credit-linked subsidy schemes of Pradhan Mantri Awas Yojana PMAY, the highest of any financial institution in India, as per HDFC.