The Housing Development Finance Corporation (HDFC) today said it plans to raise $250 million through syndicated loans this financial year. The mortgage financier had earlier announced its plans to raise $100 million through a syndicated loan.
RVS Rao, executive director, HDFC, said, "We had initiated talks with foreign banks and multi-lateral funding agencies. We are hopeful of raising S100 million shortly."
HDFC was planning to raise the two syndicated loans at an interest rate between 8.5 per cent and 8.75 per cent, he said.
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HDFC, as part of its strategy to reduce its cost of funds, has tapped various funding options including external commercial borrowings (ECB), issue of mortgage-backed securities and term loans from commercial banks.
HDFC, during last fiscal, had raised yen 12 billion for five years as ECB. Retail deposits contribute around 48 per cent of the total funds raised, which is estimated at Rs 12,000 crore for the current financial year.
Rao said that HDFC's second mortgage-backed securities (MBS) issue had received encouraging response from banks, adding that they would be able raise Rs 150 crore at 8.5-9 per cent.
"Depending on our fund requirement, we plan to come with MBS over the next three-four months," he said.
To tap the non-resident Indian (NRI) business, HDFC is planning to appoint a foreign bank, which will act as its franchisee in the UK and the US. HDFC, during this financial year, is planning to disburse an additional Rs 200 crore to NRI's.