Motilal Oswal HFC To Borrow $50 Mn, From DFC For Affordable Housing Lending

Motilal Oswal Home Finance on Wednesday said it will borrow USD 50 million (about Rs 380 crore) from US International Development Finance Corporation (DFC).

The home finance arm of the brokerage and financial services group will be deploying the funds raised via the external commercial borrowing route for on-lending towards the affordable housing sector, as per a statement. DFC, the largest development financer in the world, has given a commitment to lend the money, it added.

It provides debt financing, equity investments, feasibility studies, investment funds, political risk insurance and technical assistance. Motilal Oswal Home Finance's chief financial officer Shalibhadra Shah said this is a long term loan, which will boost its affordable housing loan business through stronger disbursements in the coming period. "Our strategy to partner with the largest development financial institution, i.e. U.S. DFC provides us additional liability sources and we would continue to diversify via the addition of multilateral/bilateral financing institutions," he said.

(PTI)