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Indiabulls Housing Finance (IBHF) has raised $100 million from State Bank of India through the external commercial borrowing (ECB) route.
The five-year loan has been priced after adding 275 basis points over the Secured Overnight Financing Rate, a global rate gauge, people involved in the capital raising said.
The fundraise, which comes amid volatile market conditions, is expected to help the home financier expand into lending for the low-income – or affordable - housing segment, one of the people said. IBHF has over 151 branches in India
The total cost of the loan is 4.25% without considering currency risk cover. The home loans provider is expected to hedge the loan as it does not have any opportunity to lend offshore after raising money from overseas. The company may also tap local bonds to raise funds.
