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HDFC announces a milestone $1.1 billion social loan for affordable housing

The loan has been priced competitively at a margin of 90 bps over SOFR

August 05, 2022 / 01:07 PM IST

HDFC Ltd. (HDFC) marked the completion of the USD 1.1

billion Syndicated Social Loan Facility for the financing of affordable housing in Indian on August 5, 2022. The loan has been priced competitively at a margin of 90 bps over SOFR (Secured Overnight Financing Rate). This transaction marks several meaningful milestones, including 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.

Significant role in 'Housing for All'

Deepak Parekh, Chairman, HDFC Ltd, said, “Affordable housing is a critical component of quality infrastructure as also a growth driver for the real

estate industry and the economy at large given its strong linkages to nearly 300 industries. It contributes to capital formation, employment, and income opportunities. A boost to affordable housing will play a significant role towards the ‘Housing for All’ objective of the government. The aspiration to own a home is inherent in every household”.

"This landmark financing further promotes HDFC’s longstanding mission to be the leading provider of housing finance in India. Proceeds from the social loan would go towards financing affordable housing loans. Since its inception in 1977, HDFC has financed 9.5 million housing units and has a gross loan book of INR 6.7 trillion. HDFC has been considered as a model for housing finance for countries with nascent mortgage markets," the HDFC said in its official release.

 
Moneycontrol News
first published: Aug 5, 2022 10:11 am
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