Press Releases
print

IFC Provides $200 Million Financing Package to India’s Top Mortgage Lender, HDFC


In Washington, DC:
L. Joseph

Phone: +202 473 7700 - Fax: +202 974 4384

Email:  
ljoseph@ifc.org


New Delhi, India, June 30, 2003—In a transaction that is expected to further develop India’s housing finance market, the International Finance Corporation, the private sector arm of the World Bank Group, has provided a financing package of $200 million to HDFC (Housing Development Finance Corporation).

The financing comprises a loan of $100 million for IFC’s own account and a syndicated $100 million loan for the account of participant banks.  The loans are integral to IFC’s strategy to assist in the expansion of financial markets in India and, in particular, to promote access to housing finance by middle- and lower middle- income households. The investment will also help to extend the tenor of funding available to HDFC from the international markets.  In the year to June 30, 2003, IFC committed to invest up to $388 million in projects in India.


Mr. Karl Voltaire, IFC director for Global Financial Markets, said, “IFC is delighted to partner with HDFC, a model institution operating at global financial and operational best practice standards. We also look forward to working with HDFC in a future partnership to develop the secondary mortgage market in India.”


Mr. Dimitris Tsitsiragos, IFC director for South Asia, added, “Access to housing finance is a critical aspect of IFC’s objective of developing India’s financial sector. In this regard, we are pleased to be working with HDFC, the largest provider of housing finance to Indian households today."


Mr. Deepak Parekh, Chairman of HDFC, responded, “This transaction will establish a new standard for tenor of funding available to an Indian financial institution from the international financial markets and will enable us to extend our reach and enhance our capacity to serve India’s growing middle-income households.”


Incorporated in 1977 as India’s first private sector retail housing finance company, HDFC has evolved into a multifaceted financial services group.  It has a market capitalization, total assets, and net worth of approximately $1.9 billion, $5 billion, and $644 million equivalent and is one of the best-managed institutions in Asia. HDFC has established one of the most reputable brand names in India’s financial services industry and has developed a close relationship with Indian households.  The HDFC Group has leveraged off its brand by expanding the franchise to subsidiaries and affiliates in banking, life and general insurance, asset management, consumer credit bureaus, and other related businesses.


The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives.  IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY02, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.