NDB Housing

completed

Summary Of Project Information (SPI)Project Name:Sri Lanka: NDB HousingRegion:South and Southeast AsiaSector:Project No:009313Projected Board Date:May 23, 1999Company Name:NDB Housing Finance Company LimitedTechnical Partner and/or Major Shareholders The Housing Development Finance Corporation Limited (HDFC) of India is the technical partner. Founded in 1977 by ICICI, IFC and The Agha Khan Foundation as the first private housing finance company in India, it is currently the market leader in housing finance in India with 56% market share. HDFC has played a key role in efforts to bring about regulatory changes aimed at market oriented housing finance in India.Project Cost Including proposed IFC investment NDB Housing will have an initial capitalization of Rupees 600 million (approximately US$9 million equivalent). IFC''s proposed equity investment of up to $1.4 million is for 15% of the Company''s capital. Location of project and Description of site Colombo, Sri LankaDescription of Company and Purpose of Project IFC has been invited to invest up to $1.4 million for a 15% equity stake in a new private sector housing finance company to be called NDB Housing Finance Company Limited (NDB Housing), that will target the housing finance needs of Sri Lanka’s middle class. NDB Housing is sponsored by the National Development Bank (NDB), the larger of the two former development finance institutions (DFIs) in Sri Lanka, that will hold about 55% of the Company. The provision of housing finance remains an urgent need in Sri Lanka, since the annual demand for housing finance is estimated at about $350 million, of which only 25% is serviced by financial institutions at present. About 66% of the supply of housing finance currently comes from state-owned institutions, while the remaining 34% is provided by private commercial banks. The proposed project will bring best housing finance industry practices and will have a strong demonstrative effect on this important sector. Environmental Category and Issues This is a Category C project according to IFC''s environmental review procedure. No further environmental review is required.      The is from the InfoShop.Date SPI sent to InfoShop:  April 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) 473-7711facsimile: (202) 974-4384