Motilal Oswal Home Finance Ltd. (MOHFL) announced it has received a commitment of USD 50 million long term loan from US International Development Finance Corporation (DFC) via External Commercial Borrowing (ECB) route.
MOHFL has joined hands with US DFC to provide affordable housing finance to women and low-income group borrowers in India.
This funding commitment of $50 million is for a period of 15 years and comes at a fixed competitive rate. The company has received the 1st tranche of this funding from DFC, it said in a press statement.
The US DFC is America’s development finance institution (DFI) and a part of the US Government. It is also the world’s largest development finance institution. The US DFC provides debt financing, equity investments, feasibility studies, investment funds, political risk insurance and technical assistance.
The funding will be utilized to support women borrowers in owning their first ‘Pucca House’, and thereby advancing gender equity in India.
Commenting on the development, Shalibhadra Shah, CFO, Motilal Oswal Home Finance, said, “The strategic partnership with DFC would boost our affordable housing loan business and paves the way for stronger disbursement growth in coming periods. Our strategy to partner with the largest development financial institution, i.e. US DFC provides us additional liability sources and we would continue to diversify via the addition of multilateral/bilateral financing institutions. Last financial year was really landmark year for our company, with strong disbursement growth, rating upgrades from all three rating agencies; a strong reduction in the cost of funds and better profitability. Further, the benefits of all these positive developments have been reflected in FY22 and are likely to continue even in future.”
Dubai-based investment banking advisory firm, Alpen Capital was the sole advisor for this transaction.
