DCM HDFC Bond (IFC-38638)

Regions
  • South Asia
Where the impacts of the investment may be experienced.
Countries
  • India
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 8, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 3, 2018

Disclosed by Bank May 9, 2017


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Project Description

According to IFC website, the project envisages a debt investment in Housing Development Finance Corporation Limited. which is the largest private sectorHousing Finance Company (HFC) in India, headquartered in Mumbai, Maharashtra with a customer base of 5.7 million customers and a loan portfolio of approximately INR2.8 trillion (US$42billion equivalent) as of December 2016. The investment proceeds from the proposed project by IFC would be used to support HDFC for on-lending to developers of affordable housing projects in India. The project has the following expected development impacts: 

1. Increase supply of affordable housing: India does not yet have a vibrant affordable housing market. While the shortage is huge (estimated at about 19 million units in urban areas), the supply of stock is still low. In this respect, the proposed project will create a large dedicated pool of funding that would help jumpstart the market with a big impact.

2. Demonstration Effect: Partnering through the proposed project, IFC and HDFC expect that this demonstration would encourage other like-minded HFCs, FIs, banks and investment funds to follow suit and produce impact, much bigger than the direct funding of the proposed project.

3. Job Creation: Real Estate and construction is one of the largest job creators in India. India is estimated to need around 76.5 million workers in the building, construction and real estate sector by 2022, with demand for affordable housing is more likely to increase from current level of 29 million households to more than 38 million households by 2030. 

 

Investment Description
  • International Finance Corporation (IFC)
Private Actors

Incorporated in October 1977, HDFC is the first specialized HFC in India and also the largest in the private sector. HDFC, through group companies, also has interests in Banking, Insurance (Life and General), Asset Management, Realty, Real Estate Venture Capital, Education Loans among others. The Company has a diversified public shareholding.

It is the largest private sectorHousing Finance Company (HFC) in India, headquartered in Mumbai, Maharashtra with a customer base of5.7 million customers and a loan portfolio of approximately INR2.8 trillion (US$42billion equivalent) as of December 2016.

Contact Information

No contact information provided at the time of disclosure. 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/