IFC invests Rs 60 cr in DHFL
Our Banking Bureau
23 June 2003
Mumbai: International Finance Corporation (IFC), the private sector arm of the World Bank group, has signed an agreement to provide a loan of Rs 600 million (about $13 million) to Dewan Housing Finance Corporation Ltd (DHFL).
Created in 1984, the company has grown its lending portfolio to its current size of about $200 million. With a network of 41 branches, DHFL is the fourth-largest housing finance company in India.
Says IFC director (South Asia) Dimitris Tsitsiragos: "IFC is committed to assisting the development of the financial sector in India and improving access to housing finance is a critical aspect of such development. This transaction fits well with IFC's strategy of supporting successful Indian housing finance companies. Of particular interest to IFC is DHFL's focus on semi-urban and rural areas, as well as lower-income segments within India's growing housing finance market."
Says DHFL chairman Rakesh Kumar Wadhawan: "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, mobilises 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.