HDFC plans to raise $300 mn

It is raising the money under the $1 billion ECB window for housing finance companies that the RBI allowed for funding affordable housing projects

Housing Finance firm HDFC Ltd today said it plans to raise $300 million through external commercial borrowing (ECB) to fund its expansion.

"About $300 million, we are going to raise but we have to wait for interest rate to stabilise," HDFC Vice Chairman and Chief Executive Officer Keki M Mistry told PTI.

Asked whether the raising of funds will happen this fiscal or the next one, he said it is not yet decided.

HDFC is raising the money under the $1 billion ECB window for housing finance companies that the Reserve Bank allowed for funding affordable housing projects.

Last month, HDFC slashed interest rates by 0.25% on home loans. The new rates for HDFC home loans of up to Rs 75 lakh have come down to 10.25%, from 10.50%.

In its monetary policy review last month, RBI kept the short-term lending rate unchanged at 7.75%, while the cash reserve ratio (CRR) remained at 4%.

Earlier, speaking at an ICAI event, Mistry said interest rate is likely to remain stable in the current quarter but may see some moderation in April-June quarter.

"I don't see interest rate going down in the first quarter of this year as there is a huge demand for credit during the period due to various reason. It is usually busy season," he said.

Post April, RBI will have more options to bring down interest rate as credit off-take during that period will be low, he said.