India’s largest mortgage lender Housing Development Finance Corp Ltd. (HDFC Ltd) announced the completion of the $1.1 billion Syndicated Social Loan Facility for the financing of affordable housing in India.
The loan has been priced at a margin of 90 bps over SOFR (Secured Overnight Financing Rate). HDFC said the transaction marks several milestones, including India’s largest social financing issuance, the largest social loan globally, the first social External Commercial Borrowing (ECB) loan out of India and the largest ECB loan deal from a Housing Finance Company, private NBFC in India.
Proceeds from the social loan would go towards financing affordable housing loans. Since its inception in 1977, HDFC has financed 9.5 million housing units and has a gross loan book of Rs 6.7 trillion.
MUFG Bank, Ltd. (MUFG) is the Lead Social Loan Coordinator for this transaction along with being one of the Mandated Lead Arranger and Borrowers (MLAB). CTBC Bank, Co., Ltd., Mizuho Bank, Ltd., State Bank of India and Sumitomo Mitsui Banking Corporation are the other MLABs and Joint Social Loan Coordinators.
HDFC’s Social Financing Framework is in line with globally-recognised social loan frameworks designed for participants in the sustainability financing market to consistently certify, track and monitor the social impact of financing assets, a press statement from the lender added.
Deepak Parekh, Chairman, HDFC Ltd, said “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. It contributes to capital formation, employment, and income opportunities. A boost to affordable housing will play a significant role towards the ‘Housing for All’ objective of the government. The aspiration to own a home is inherent in every household”.
“In India, housing will play an important role as a catalyst for growth with increased demand for affordable housing. Combined with India’s growth prospects, I have never been as optimistic about the affordable housing sector as I am today”, he added.
