Affordable housing: RBI nod for NHB’s $200-million overseas loan

NEW DELHI, NOV. 27, 2013: National Housing Bank (NHB) has received Reserve Bank of India (RBI) approval for raising $ 200 million external commercial borrowing (ECB) under the affordable housing window.

The housing finance regulator will mobilise this amount before end March this fiscal, R.V. Verma, Chairman & Managing Director, NHB told Business Line here.

NHB will again go back to RBI once the lender is finalised and the term sheet is ready, Verma added.

This is because the funds are being raised under the approval route.

Verma also said that NHB is in talks with only one lender and is not looking at several lenders (no syndication) for raising this amount.

Raising ECB will diversify NHB’s resource base and generate confidence among international investors in the Indian housing finance market.

Low-income housing is a new thrust area for NHB, which last year slashed refinance rates on loans up to Rs 5 lakh.

The Government has already decided to allow ECBs for low-cost housing projects.

Both NHB and housing finance companies are included as eligible borrowers for financing low-cost projects. Hindu Business Line