HDFC to raise $300 million through ECB

Housing finance major HDFC Ltd today said it planned to raise $300 million through external commercial borrowing (ECB) for funding its expansion.

Agency reports quoting HDFC vice chairman and CEO Keki M Mistry, said the company was going to raise about $300 million, but it needed to wait for the interest rate to stabilise.

The funds would be raised this fiscal or the next one, but it was not yet decided, according to a PTI report.

The money was being raised by HDFC under the $1 billion ECB window for housing finance companies that the Reserve Bank allowed for funding affordable housing projects.

The company last year cut interest rates by 0.25 per cent on home loans and with this the rates for HDFC home loans of up to Rs75 lakh had fallen to 10.25 per cent, from 10.50 per cent.

In its monetary policy review last month, RBI retained the short-term lending rate at 7.75 per cent, while the cash reserve ratio (CRR) remained at 4 per cent.

Earlier, speaking at an event, Mistry said interest rate would likely remain stable during the current quarter but there may be some moderation in April-June quarter.

Mistry said he did not see interest rate falling in the first quarter of this year as there was a huge demand for credit in the period due to various reasons. He added it was usually a busy season.

Post April, RBI would have more options to lower interest rate as credit offtake during that period would be low, he said.