HDFC plans to raise $300 mn

Housing Finance firm HDFC Ltd today said it plans to raise USD 300 million through external commercial borrowing (ECB) to fund its expansion. "About USD 300 million, we are going to raise but we have to wait for interest rate to stabilise," HDFC Vice Chairman and Chief Executive Officer Keki M Mistry told PTI.

Asked whether the raising of funds will happen this fiscal or the next one, he said it is not yet decided. HDFC is raising the money under the USD 1 billion ECB window for housing finance companies that the Reserve Bank allowed for funding affordable housing projects.

Also read: Govt clears ETF plan; to raise Rs 3,000 cr in FY14 

Last month, HDFC slashed interest rates by 0.25 percent on home loans. The new rates for HDFC home loans of up to Rs 75 lakh have come down to 10.25 percent, from 10.50 percent. In its monetary policy review last month, RBI kept the short-term lending rate unchanged at 7.75 percent, while the cash reserve ratio (CRR) remained at 4 percent.