HDFC plans to raise $300 million via ECBs

Jan 11 2014, 17:52 IST
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SummaryHousing Finance firm plans to raise funds through external commercial borrowing to fund its expansion.

Housing Finance firm Housing Development Finance Corporation Ltd (HDFC) on Friday said it plans to raise $300 million through external commercial borrowing (ECB) to fund its expansion.

“About $300 million, we are going to raise but we have to wait for interest rate to stabilise,” said HDFC vice chairman and CEO Keki M Mistry. Asked whether the raising of funds will happen this fiscal or the next one, he said it is not yet decided.

HDFC is raising the money under the $1-billion ECB window for housing finance companies that the Reserve Bank allowed for funding affordable housing projects.

Last month, HDFC slashed interest rates by 0.25% on home loans. The new rates for HDFC home loans of up to R75 lakh have come down to 10.25%, from 10.50%.

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

Earlier, Mistry said interest rate is likely to remain stable in the current quarter but may see some moderation in April-June quarter.

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