Monday, July 28, 2008

IFC consortium to invest in Maldives' housing sector

IFC, a member of the World Bank Group, the Asian Development Bank, and HDFC Investments, a subsidiary of HDFC, are investing in Maldives to help reduce the country's severe housing shortage.

The equity and loan investment package will enable privatisation of state-run Maldives' Housing Development Finance Corporation and transform it into a commercially viable private sector-led company, a press release issued here today said.

The equity component of the package is around $12.75 million. IFC and ADB will each invest around $4.5 million, while HDFC Investments will invest $3.75 million, the release said, adding that IFC and ADB will also provide a $7.5 million loan each to support the project.

There is an urgent need for housing in Maldives, which faces a growing population and pressure on limited land resources.

HDFC-Maldives was established by the Maldives government in 2004 to provide long-term mortgage financing, the release added.

Source: economictimes.indiatimes.com

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