Mumbai, June 28: Housing Development Finance Corporation has signed an agreement with the International Finance Corporation (IFC) for a loan for $200 million, the company said in a statement on Friday. It will shortly draw down the loan, which has two tranches.
IFC, an arm of the World Bank, will directly lend the first tranche of $100 million and shortly place the second tranche of $100 million with leading international banks.
The first tranche has a bullet maturity at the end of eight years and the interest rate is one percentage point over the six-month LIBOR.
The loan is expected to broadbase HDFC's medium- to long-term funding sources and reduce its overall cost of funding.
HDFC will hedge the foreign exchange risk arising out of the borrowing through suitable risk management. Bureau Report