HDFC raises $300 mn under low-cost housing scheme

Housing Development Finance Corporation Ltd (HDFC) raised $300 million through external commercial borrowing (ECB) under the low-cost affordable housing scheme. The money was raised from a consortium of four lenders, including State Bank of India (SBI), Sumitomo Mitsui Banking Corporation(SMBC), The Bank of Tokyo-Mitsubishi UFJ and DBS Bank, the company said in a release.

The rate of interest on the facility is linked to Libor plus a spread of 1.75 per cent. The borrowing facility has a tenor of five years. HDFC has swapped the facility in rupees for the entire tenor of the loan, the company said in the statement.

Roadshows shall be conducted by the lender banks in Taipei and Singapore in March 2014 to syndicate the facility and invite other international banks to participate in the facility, HDFC said.