Hudco may get $150-m line of credit from ADB next fiscal
Thursday, January 10, 2013
Housing and Urban Development Corporation Ltd (Hudco) is in talks with Asian Development Bank (ADB) for $150-million financial assistance under the catalysing sustainable finance (CSF) facility.
The proposed facility is a concept developed by the two and uses the bank’s financial intermediation loan modality.
“We are negotiating this (for $150-million loan under CSF). It is likely to happen in next financial year (2013-14). It will be a project-based line of credit to support housing development,” V.P. Baligar, Chairman and Managing Director, Hudco, told Business Line here on Wednesday.
This facility is a leveraged finance mechanism designed as a financial intermediation loan with linked conditions for lending to sub-projects in challenging urban infrastructure sectors.
The eligible sub-projects are those in sub-sectors including low-cost housing in urban areas; housing for economically weaker sections in urban and rural areas; slum rehabilitation including provision of basic services in slums; and provision of temporary and transit shelters for the poor.