HDFC's subsidiary HDB to raise $150 mn from IFC in senior debt investment

The proposed IFC debt facility will enable HDB to expand its individual micro & small business loan portfolio in the low-income states (LIS) of India

HDB Financial Services Limited (HDB), a subsidiary of HDFC Bank Limited, is set to raise $150 million from International Finance Corporation (IFC).  The investment will be in the form of senior debt investment, said the World Bank's investment arm.

IFC’s loan to the financial institution described in this SII is targeted for on-lending for MSMEs.       

The proposed investment comprises senior debt investment in HDB, which is a non-banking finance company(NBFC) providing financing to micro-small and medium enterprises (MSMEs) across India and is a subsidiary of HDFC Bank Limited, India’s largest private sector bank. HDB operates through a