HDFC's borrowing programme

CHENNAI MAY 29. Housing Development Finance Corporation Ltd. (HDFC) has lined up a slew of borrowing initiatives to part-fund its lending programme for the current financial year.

These exercises will see it raise around $250 million Libor-linked debt, access ADB (Asian Development Bank) funds to the tune of $ 150 million and go in for a mortgage-based security (MBS) loan of around Rs. 150 crores.

According to R. V. S. Rao, executive director, HDFC has already kick-started its MBS loan initiative through the book-building route. The exercise will close in the first week of next month.

Addressing an informal gathering of select presspersons here today, Mr. Rao said HDFC had solicited the help of ABN Amro to arrange $100 million debt in Singapore. It would enter the global market again within three months to raise the remaining $150 million.

The borrowing programme must be read in the context of HDFC's desire to increase the loan sanction in the current year to Rs.12,000 crores from Rs. 9,042 crores last year. This would require funds worth Rs. 9,500 crores, Mr. Rao said.

Mr. Rao hinted at the possibility of establishing a common centre in Chennai for managing post-dated cheques which HDFC collect in advance from its clients towards payment of equated monthly instalments.

At present, these were handled at branch levels, he pointed out.

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