Housing Development Finance Corporation (HDFC) has raised $1.1 billion in debt for financing its affordable housing operations in India, the lender said in an exchange filing. The company has raised the fund through syndicated social loan facility, and it is priced at a margin of 90 basis points (bps) over the secured overnight financing rate.
Since inception, HDFC has financed 9.5 million housing units and has a gross loan book of Rs 6.7 trillion.
MUFG Bank is the lead social loan coordinator for the deal and the mandated lead arranger and borrower. CTBC Bank, Mizuho Bank, State Bank of India and Sumitomo Mitsui Banking Corporation are the other MLABs and joint social loan coordinators.
“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,” Deepak Parekh, chairman of HDFC, said.
The affordable housing sector loans grew by 20% YoY in FY22, led by a smaller base, the ability to penetrate unorganized segments and strong appraisal skills, ratings agency CareEdge had said in a report. In terms of loan product, the growth was mainly driven by the loan against property segment, it said.
In FY23, most affordable housing finance companies have guided strong pipelines, Kotak Institutional Equities said in a report.