HDFC, IFC in $200-m pact

Mumbai: Housing Development Finance Corporation (HDFC) has signed a loan agreement for $200 million with International Finance Corporation (IFC).

The loan will be available to HDFC in two tranches — the first part of $100 million to be lent directly by IFC as a multilateral tranche, and the second part as a syndicated tranche, according to a news release from the housing finance company.

The first tranche has a bullet maturity at the end of eight years, the rate of interest being six-month Libor plus 100 basis points. The second tranche will be syndicated by IFC and will be placed with leading international banks.

The syndication process will be completed shortly, said the release. The main objective of the loan was to broadbase the medium-to-long-term funding sources for HDFC and also to reduce the overall cost of funding, said HDFC.

The proceeds of the loan will be utilised for on lending to individuals across the country for residential housing.