Housing Development Finance Corporation Plc

Company Overview Housing Development Finance Corporation (HDFC) Limited was incorporated as a state owned enterprise on 28 January 2004 by a Presidential Decree under the Companies Act, Law No: 10/96. The commercial operations commenced on March 29, 2004. HDFC was established with technical assistance from the World Bank, and initially all shares were held by the Government of Maldives (GOM). HDFC Plc. was registered as a public company on the 9th of February 2006. The HDFC Plc. was privatized with the signing of a shareholders' agreement for privatization between the GOM, IFC, ADB and HDFC-Investments Ltd.-India on July 23, 2008. This Public Private Partnership has a joint foreign investment in 51% shares by International Finance Corporation (IFC) of the World Bank Group, Asian Development Bank (ADB) and HDFC Investments Ltd of India. The structure of the shareholding in the privatized HDFC Plc.is as follows: Government of the Maldives 49% International Finance Corporation 18% Asian Development Bank 18% HDFC Investments Ltd. (India) 15% HDFC is unique as the only specialized housing finance institution in the Maldives. With six commercial banks operating in the mortgage housing loan market, HDFC's competitive long repayment terms and income-pooled home loans enabled the achievement of a 55% market share by the end of 2014 when the industry loan portfolio stood at MVR. 2 billion. The demand for home loans continue at a rate of growth that outstrips the supply of matching funds, and long-term bonds denominated in MVR is seen as the way forward to create sustainable housing finance in the Maldives.