As part of its ambitious plan, HDFC, the largest mortgage lender by asset size in India, has raised about Rs 8700 crore from a few investors by way of social external commercial borrowings (ECBs) to fund affordable housing.
The loan has been raised under ‘Syndicated Social Loan Facility’ and the proceeds will go to cater affordable housing. MUFG Bank Limited 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, State Bank of India and Sumitomo Mitsui Banking Corporation are the other MLABs and joint social loan coordinators. This loan assumes significance as this is the largest social loan globally and the largest ECB loan deal from a housing finance company or a private NBFC in India.
Since the last 45 years of its inception, HDFC has financed 9.5 million housing units , having a gross loan book of Rs 6.7 trillion with a major focus on affordable housing. Loans by the mortgage lender have assisted 314,000 beneficiaries, the highest by any financial institution in India. This financing is mostly in affordable housing under the CLSS (credit linked subsidy scheme) of the Pradhan Mantri Awas Yojana (PMAY).
HDFC’s latest Rs 8700 crore financing plan, will give a further push to affordable housing in India, making a major contribution towards meeting the objectives of the ‘Housing For All’ flagship mission of the Modi government.