Motilal Oswal Home Finance Obtains USD 50 Million Pledge From US International Development Finance Corporation

Motilal Oswal Home Financing (MOHFL), a home finance firm, has secured a USD 50 million long-term loan commitment from the United States International Development Finance Corporation (DFC) through the external commercial borrowing (ECB) channel. MOHFL has partnered with the United States Development Financing Corporation to offer affordable housing finance to women and low-income borrowers in India.

This 15-year financing commitment is at a set competitive rate. DFC has provided the firm with the first tranche of this financing.

The US DFC is the US government's development finance institution (DFI). The US DFC finances loans, makes equity investments, does feasibility studies, manages investment funds, insures political risk, and offers technical help.

DFC donated this money under its 2X Women's Initiative after conducting rigorous due diligence and proving the company's commitment to sustainable development. The funds will be used to assist female borrowers in purchasing their first 'Pucca House,' furthering gender parity in India.

Shalibhadra Shah, Chief Financial Officer of Motilal Oswal Home Finance, said, "The relationship with DFC would help us build our affordable home loan business and pave the road for future disbursement growth." Our approach of partnering with the biggest development financial institution in the world, namely the US DFC, provides us with new liability sources, and we want to continue diversifying our liability sources with the inclusion of multilateral/bilateral finance institutions."

Alpen Capital, a Dubai-based investment banking consulting company, was the only adviser on this transaction.