Explorer

HDFC Signs World’s Largest Social Loan Worth $1.1 Billion For Affordable Housing

The loan package has been priced at a margin of 90 basis points over secured overnight financing rate

Housing Development Finance Corporation (HDFC), India’s top mortgage lender, said it has secured the world’s biggest social loan of $1.1 billion facility to fund affordable residences, news agency Bloomberg reported on Friday.

According to the report, the loan package has been priced at a margin of 90 basis points over secured overnight financing rate.

HDFC in a statement said MUFG Bank Ltd. was the lead social loan coordinator and also one of the mandated lead arrangers and borrowers along with CTBC Bank Co., Mizuho Bank Ltd., State Bank of India, and Sumitomo Mitsui Banking Corp.

“Affordable housing is a critical component of quality infrastructure as also a growth driver for the real estate industry and the economy at large,” said HDFC Chairman Deepak Parekh.

HDFC's loan facility complies with international social loan frameworks that consistently certify, track and monitor the social impact of financing assets, the financier said.

Use of proceeds, objectives and transparency are among the main principles of social loans, according to the Loan Market Association.

HDFC's loan facility complies with international social loan frameworks that consistently certify, track and monitor the social impact of financing assets, the financier said.

Use of proceeds, objectives and transparency are among the main principles of social loans, according to the Loan Market Association. The credit line and HDFC's stated objective is in line with a core pledge of Prime Minister Narendra Modi’s government, which has made “housing for all” a policy objective.

HDFC's jumbo social loan will add to volume of sustainable-linked debt that has taken a beating this year as companies took a back seat to focus on securing or saving cash under increasing inflation. Social loans form a small portion of the overall market for sustainable debt.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

'You Will Be Chief Minister Someday': Fadnavis Tells His Deputy Ajit Pawar, Shares 24-Hour Work Plan
'You Will Be Chief Minister Someday': Fadnavis Tells His Deputy Ajit Pawar, Shares 24-Hour Work Plan
'Motion' To Remove Jagdeep Dhankhar As Rajya Sabha Chairman Dismissed On Technicality. Here's What Happened
'Motion' To Remove Dhankhar As RS Chairman Dismissed On Technicality
Rahul Gandhi Sports Blue T-Shirt To Protest Ambedkar's 'Insult'. Know Why Blue Is Linked With Dalit Resistance
RaGa Sports Blue T-Shirt To Protest Ambedkar's 'Insult'. Know Why Blue Is Linked With Dalit Resistance
'I Never Thought...': Ravichandran Ashwin Responds To Father's Controversial Remarks
'I Never Thought...': Ravichandran Ashwin Responds To Father's Controversial Remarks
Advertisement
ABP Premium

Videos

Rahul Gandhi Linked to Incident That Led to BJP MP Mukesh Rajput’s HospitalizationBJP MP Mukesh Rajput Hospitalized in ICU After Alleged Push by Rahul GandhiHeated Exchange in Parliament as Opposition Targets Amit Shah Over Ambedkar RemarksLucknow Protest Turns Tragic: Congress Worker Dies, Police Investigation Underway

Photo Gallery

Embed widget