Motilal Oswal Home Finance receives USD 50 mn commitment from U.S. International Development Finance Corporation (DFC)
Motilal Oswal Home Finance receivesUSD 50 mn commitment from U.S. International Development Finance Corporation(DFC)
Mumbai, 06th April, 2022: Motilal Oswal Home FinanceLtd. (MOHFL), one of the leading new age Housing Finance Companies inIndia, has received a commitment of USD 50 million long term loan from U.S.International Development Finance Corporation (DFC) via External CommercialBorrowing (ECB) route. MOHFL has joined hands with U.S DFC to provideaffordable housing finance to women and low-income group borrowers in India.This funding commitment of USD 50 mn is for a period of 15 years and comes at afixed competitive rate. The company has received the 1st tranche ofthis funding from DFC.
The U.S. DFC isAmerica’s development finance institution (DFI) and a part of the U.S.Government. It is also the world’s largest development finance institution. TheU.S. DFC provides debt financing, equity investments, feasibility studies,investment funds, political risk insurance and technical assistance.
DFC investmentsadhere to high standards and respect the environment, human rights, and workerrights. After extensive due diligence and validating the company’s belief insustainable development, DFC has committed this funding under its 2XWomen’s Initiative. The funding will be utilized to support womenborrowers in owning their first ‘PuccaHouse’, and thereby advancing gender equity in India.
Commenting on the development, Mr. Shalibhadra Shah, CFO, MotilalOswal Home Finance, said, “This long term loan from U.S. DFC validates MOHFL’s efforts towardsproviding financing solutions to women and low income group borrowers in India.The strategic partnership with DFC would boost our affordable housing loanbusiness and paves the way for stronger disbursement growth in coming periods.Our strategy to partner with the largest development financial institution,i.e. U.S. DFC provides us additional liability sources and we would continue todiversify via the addition of multilateral/bilateral financing institutions.Last financial year was really landmark year for our company, with strongdisbursement growth, rating upgrades from all three rating agencies; a strongreduction in the cost of funds and better profitability. Further, the benefitsof all these positive developments have been reflected in FY22 and are likelyto continue even in future.”
Dubai-basedinvestment banking advisory firm, Alpen Capital was the sole advisor for thistransaction.
About Motilal Oswal Home Finance Limited:
About Motilal Oswal Home Finance Limited(MOHFL), is registered with National Housing Bank (NHB) and is amongst theleading new age Housing Finance Companies in India having its presence across11 states in Western, North-Central and Southern India. The company is a professionallymanaged housing finance company with unique combination of financially soundand technically experienced parentage having built public trust of over 4decades in the domain of financial services. The group is known for theirprofessional ethics, robust knowledge and strong execution capabilities. Thecompany works on the business philosophy of financial inclusion of Lower IncomeGroup Indian families by providing them an access to long term housing finance.MOHFL is a subsidiary of Motilal Oswal Financial Services Limited (MOFSL).MOFSLis a well-diversified, financial services company focused on wealth creationfor all its customers, such as institutional, corporate, HNI and retail. MOHFLis registered with National Housing Bank (NHB) under section 29A of theNational Housing Bank Act,1987 as a HFC under section 29A of the NationalHousing Bank Act, 1987 vide Certificate of Registration No. 05.0111.14 datedMay 19, 2014.
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Group Head – Corporate Communication, MotilalOswal Financial Services Ltd