According to people familiar with the matter, Housing Development Finance Corp is set to become the first Indian borrower to take advantage of the central bank’s relaxed rules on external commercial borrowings, increasing its foreign loan to around $1 billion from $750 million previously. The funding costs will remain constant.

According to the people cited above, the State Bank of India will join the syndication process, which already has confirmed participation from Mizuho Bank, MUFG, and Standard Chartered Bank.

The proceeds will be used by the country’s largest mortgage lender to lend to buyers of low-cost affordable homes.
The loan term was finally set at three years. The loan could be priced by adding about 115 basis points to the Secured Overnight Financing Rate (SOFR), a global rate gauge.