HDFC's enjoys broad institutional ownership. Its equity shares are listed on the Mumbai Stock Exchange and the National Stock Exchange and are permitted for trading on all the recognized stock exchanges in India. The shareholding pattern, as of December 31, 2002, was as follows :- Foreign Institutional Investors 50%- Individuals 16%- Foreign Direct Investment 23%- Local Financial Institutions 6%- Mutual Funds 3%- Local companies 2%

IFC will provide HDFC with an A Loan of $100 million to $150 million for a tenure of up to 8 years, and a B Loan of $50 million to $100 million for a tenure of 6 years. The total investment of the A Loan and B Loan combined would amount to up to $200 million

150.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
Equity

* These investment figures are indicative

HDFC is headquartered in Mumbai (Bombay) and has an extensive network of 142 offices around India which enables it to access customers that smaller institutions cannot reach. The company’s extensive network allows it to offer a rapid response to loan applications and the lowest cost structure in the industry.

This is a Category C project, according to IFC''s Procedure for Environmental and Social Review of Projects, because it is likely to have minimal or no adverse environmental impacts.

Location of environmental documents in locally affected community

HDFC provides mortgages all over India. The company is among the best institutions in the country to address the needs of the middle and lower income segment of the market. Its extensive network, financial strength, and operational efficiency will allow it to structure and price its products so that they are affordable, and without subsidy, to prospective middle and lower income house-owners. Moreover, the strong brand recognition of HDFC will generate confidence in prospective borrowers who have never borrowed from formal housing finance institutions before, thereby enabling rapid penetration. Analyst reports suggest that the demand for housing will outpace the growth and funding capacity of existing financial institutions, even if they target only the predominantly urban top 30% income tier of the population. Without increased longer term funding available, the middle and lower income segment of the market will continue to be under-served for the foreseeable future. IFC's goal in this project is to encourage and support HDFC in its drive to extend its lending to the middle and lower income segment of the housing finance market in India. The IFC loan will be help the company expand a lending program focused on the middle income segment of the population, which is substantial and underserved.