The project consists of a loan of up to $7.5 million to, and an equity investment of up to$4.5 million in the Housing Development Finance Corporation (HDFC) located in the Maldives. HDFC is a specialized finance institution that was established to mobilize long-term financing for the provision of mortgage financing for affordable homes.
|Project Name||MLD: EQUITY INVESTMENT AND LOAN TO THE HOUSING DEVELOPMENT FINANCE CORPORATION|
|Borrower/Company||HOUSING DEVELOPMENT FINANCE CORPORATION PLC
|Approval Number||7274, 7274/2418|
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change|
|Sector / Subsector||
Finance - Housing finance
|Gender Equity and Mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Gunawardhena, Manohari|
|Description||The project consists of a loan of up to $7.5 million to, and an equity investment of up to$4.5 million in the Housing Development Finance Corporation (HDFC) located in the Maldives. HDFC is a specialized finance institution that was established to mobilize long-term financing for the provision of mortgage financing for affordable homes.|
|Objectives and Scope||The loan will enable HDFC to further expand its activities by providing access to long-term funding that is necessary for providing long-term mortgages. The equity investment will support the government's privatization plan for HDFC and will lead to a more efficient mortgage finance company.|
|Linkage to Country/Regional Strategy||The Project addresses some of the key concerns highlighted by the CPS (2007-2011). First, it increases private sector participation in the economy through the privatization of HDFC. Second, it will help alleviate some of the Government's fiscal burden, as the Government can no longer provide funding for HDFC. Third, the financial sector will be strengthened through the expansion of HDFC operations. Fourth, the TA will strengthen HDFC's institutional capacity. Finally, and most importantly, the Project will address the chronic shortage of housing.|
Summary of Environmental and Social Aspects
The loan is assigned a classification of FI for environment and category C for indigenous people and resettlement. As per ADB's Environment Policy (2002), HDFC will be required to establish an environmental management system and resettlement framework, within a time frame to be specified and setting out detailed screening and assessment mechanisms. ADB will review and approve the developed environmental management system. Further, HDFC will build capacity for implementing the system in accordance with its specific business needs and with ADB assistance, and will send at least one HDFC officer to ADB-sponsored environmental management training.
With respect to the poverty analysis impact of the project, the project has been assigned a classification of GI. The Project will indirectly contribute to poverty reduction by supporting private sector growth and promoting mortgage financing in the Maldives. The social impact of the Project is high. The provision of mortgage lendilig will enable a broad spectrum of Maldivian society access to housing. Moreover, mortgage lending enables a country to generate multiple sources of employment in the construction and real estate industries
|Involuntary Resettlement||The loan is assigned a classification of category C for resettlement.|
|Indigenous Peoples||The loan is assigned a classification of category C for indigenous people.|
|Stakeholder Communication, Participation, and Consultation|
Timetable for assistance design, processing and implementation
|Concept Clearance||18 Apr 2007|
|Due Diligence||22 Apr 2007|
|Credit Committee Meeting||11 Mar 2008|
|Approval||09 Apr 2008|
|PDS Creation Date||25 Oct 2007|
|Last PDS Update||30 Sep 2014|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Housing Development Finance Corporation: Extended Annual Review Report||Extended Annual Review Reports||Sep 2016|
|Housing Development Finance Corporation||Reports and Recommendations of the President||Mar 2008|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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