Summary of Proposed Investment
Project Number
10442
Company Name
SUNDARAM HOME FINANCE LIMITED
Date SPI Disclosed
Jul 27, 2001
Country
India
Industry
Financial Markets
Projected Board Date
Aug 30, 2001
Status
Completed
Sector
Primary Mortgage Institutions
Department
Regional Industry - FIG Asia & Pac
Environmental Category
C - No Impact
Previous Events
Approved : Nov 26, 2001
Signed : Apr 29, 2002
Invested : Jul 3, 2002
Project Description
The purpose of the project is to support the expansion of a fast-growing, well capitalized housing finance company focused on Southern India. The Indian mortgage market has witnessed growth of 20% in the past five years and is expected to continue to grow at double digit rates into the near future. This growth reflects the huge demand of India''s population and the fact that the country suffers from a housing shortage estimated at 19 million units in 2001. Sundaram Home Finance will provide mortgages to underserved markets both outside and within the major metropolitan areas in the south.
IFC''s role is to provide long-term fixed rate debt so the company can fund its mortgages loans with limited interest rate and maturity mismatches, and no currency risk. IFC has also been providing the company with ongoing advice in the areas of market strategy, asset and liability management, and product development. The main development impact comes at two levels. First, IFC''s funds will enable Sundaram Home to make loans to Indian households, which will directly improve their living conditions and quality of life. Second, the provision of housing finance helps improve the housing stock, stimulating the construction sector and other industrial activities.
IFC''s role is to provide long-term fixed rate debt so the company can fund its mortgages loans with limited interest rate and maturity mismatches, and no currency risk. IFC has also been providing the company with ongoing advice in the areas of market strategy, asset and liability management, and product development. The main development impact comes at two levels. First, IFC''s funds will enable Sundaram Home to make loans to Indian households, which will directly improve their living conditions and quality of life. Second, the provision of housing finance helps improve the housing stock, stimulating the construction sector and other industrial activities.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Thomas Lubeck, Investment Officer.Email: tlubeck@ifc.org