Mumbai, June 23, 2003—The International
Finance Corporation, the private sector arm of the World Bank Group, has
signed an agreement to provide a loan of Indian Rupees 600 million (approximately
$13 million) to Dewan Housing Finance Corporation Limited.
Created in 1984, the company has grown its lending portfolio to its current
size of about $200 million. With a network of 41 branches, DHFC is the
fourth-largest housing finance company in India.
Mr. Dimitris Tsitsiragos, IFC Director for South Asia, said, “Improving
access to housing finance is a critical aspect of IFC’s assistance
in developing India’s financial sector. This transaction fits well
with our strategy of supporting successful Indian housing finance companies.
IFC is particularly interested in DHFC’s focus on semi-urban and
rural areas, as well as lower-income segments within India’s growing housing
According to Mr. Rakesh Kumar Wadhawan, DHFC’s Chairman, “IFC’s loan
marks the first time the company has worked with a foreign lender or multilateral
agency. The funds raised through IFC’s loan will be used for on-lending
to clients who need housing finance. The loan will help us broaden
our customer reach.”
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.