National Housing Bank (NHB) will soon seek RBI nod to allow the housing finance regulator to raise $ 200 million external commercial borrowing (ECB) under the ‘affordable housing’ window this fiscal.
Although NHB had last fiscal received RBI nod for the ECB mop-up, it could not go ahead with the transaction as the approval came in the later part of last fiscal.
“We will soon approach RBI and seek approval to raise $ 200 million ECB for affordable housing this fiscal. This will be under approval route”, R.V.Verma, Chairman & Managing Director, NHB told Businessline here. on Thursday
Raising ECB will diversify NHB’s resource base and generate confidence among international investors in the Indian housing finance market.
Low-income housing is a new thrust area for NHB, which last year slashed refinance rates on loans up to Rs 5 lakh.
The Government has already decided to allow ECBs for low-cost housing projects.
Both NHB and housing finance companies are included as eligible borrowers for financing low-cost projects.