Summary of Proposed Investment
Project Number
9772
Company Name
SUNDARAM HOME FINANCE LIMITED
Date SPI Disclosed
Sep 14, 1999
Country
India
Industry
Financial Markets
Status
Completed
Sector
Primary Mortgage Institutions
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Dec 22, 1999
Signed : Jan 5, 2000
Invested : Feb 24, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | India - Sundaram Home |
RegionSouth and Southeast Asia
Sector
Project No009772
Projected Board DateOctober 14, 1999
Company NameSundaram Home Finance Limited
Technical Partner and/or Major Shareholders
Sundaram Finance, which will be the majority shareholder with a 60% stake, is a non-bank financial institution established in 1954 as a wholly owned subsidiary of the Madras Motor Insurance Company Limited. Over the last forty-six years, Sundaram Finance has expanded operations and built up a network of 95 branches across India with a focus on the South, and is viewed as one of the strongest finance firms in terms of its distribution and conservative management.
There are ongoing discussions with a bilateral investment agency for a 20% stake in Sundaram Home.
Project Cost Including proposed IFC investment
The total project cost is estimated at approximately US$ 12 million. IFC is considering a 20% equity stake in Sundaram Home Finance Limited for an amount of approximately US$ 2.4 million.
Location of project and Description of site
Sundaram Home Finance Limited will be headquartered in Chennai, Tamil Nadu, India.
Description of Company and Purpose of Project
Sundaram Home Finance Limited will be established as a specialized housing finance company. Sundaram Home will address India''s scarcity of long term debt financing for housing investments. It will be strongly capitalized, placing it among the top housing finance companies in India. Sundaram Home will provide mortgage loans to individuals as well as to corporations. The initial geographic focus of the company will be in South India.
The project provides IFC with an opportunity to build up a well capitalized housing finance institution in India, which continues to face difficulties in meeting the housing needs for its rapidly growing number of urban households.
Environmental Category and Issues
This is a category C project according to IFC''s environmental and social review procedure. Therefore, no further environmental and social analysis is required.
| Date SPI sent to InfoShop | September 14, 1999 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
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