Sundaram Home Finance Ltd.

completed

The purpose of the project is to support the expansion of a fast-growing, well capitalized housing finance company focused on Southern India. The Indian mortgage market has witnessed growth of 20% in the past five years and is expected to continue to grow at double digit rates into the near future. This growth reflects the huge demand of India''s population and the fact that the country suffers from a housing shortage estimated at 19 million units in 2001. Sundaram Home Finance will provide mortgages to underserved markets both outside and within the major metropolitan areas in the south.IFC''s role is to provide long-term fixed rate debt so the company can fund its mortgages loans with limited interest rate and maturity mismatches, and no currency risk. IFC has also been providing the company with ongoing advice in the areas of market strategy, asset and liability management, and product development. The main development impact comes at two levels. First, IFC''s funds will enable Sundaram Home to make loans to Indian households, which will directly improve their living conditions and quality of life. Second, the provision of housing finance helps improve the housing stock, stimulating the construction sector and other industrial activities.