India’s top mortgage lender Housing Development Finance Corp has secured the world’s biggest social loan, a $1.1 billion facility (around Rs 8,700 crore) to fund affordable residences, underscoring potential for sustainability-linked financing.
The package has been priced at a margin of 90 basis points over secured overnight financing rate. MUFG Bank Ltd. was the lead social loan coordinator and also one of the mandated lead arrangers and borrowers along with CTBC Bank Co., Mizuho Bank Ltd., State Bank of India and Sumitomo Mitsui Banking Corp., according to an HDFC statement.
“Affordable housing is a critical component of quality infrastructure as also a growth driver for the real estate industry and the economy at large,” said Deepak Parekh, HDFC chairman.
This is India’s largest social financing issuance, the largest social loan globally, the first social ECB loan out of India and the largest ECB loan deal from a Housing Finance Company/private NBFC in India, HDFC said in a release.
Since its inception in 1977, the largest mortgage lender by asset size in the country has financed 9.5 million (95 lakh) housing units and has a gross loan book of Rs 6.7 trillion.