HDFC plans to raise $300 million via ECBs

Written by PTI | New Delhi | Updated: Jan 11 2014, 23:22pm hrs
Housing Finance firm Housing Development Finance Corporation Ltd (HDFC) on Friday said it plans to raise $300 million through external commercial borrowing (ECB) to fund its expansion.

About $300 million, we are going to raise but we have to wait for interest rate to stabilise, said HDFC vice chairman and CEO Keki M Mistry. 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 $1-billion ECB window for housing finance companies that the Reserve Bank allowed for funding affordable housing projects.

Last month, HDFC slashed interest rates by 0.25% on home loans. The new rates for HDFC home loans of up to R75 lakh have come down to 10.25%, from 10.50%.

In its monetary policy review last month, RBI kept the short-term lending rate unchanged at 7.75%, while the cash reserve ratio (CRR) remained at 4%.

Earlier, Mistry said interest rate is likely to remain stable in the current quarter but may see some moderation in April-June quarter.