MOFSL's Aspire Home Finance raises Rs 100 crore from IFC for expansion

Mumbai: Aspire Home Finance Corporation has raised Rs 100 crore debt from International Finance Corporation (IFC) to fund its expansion in the lower and middle income housing market segments.

The housing finance company, a subsidiary of Motilal Oswal Financial Services (MOFSL), plans to use the rupee denominated funding to meet the financing needs of people with average loan requirement of Rs 10 lakh.

"The advantage for a housing finance company to get such kind of funds is that it matches our longer tenure duration of lending," Anil Sachidanand, CEO of Aspire Home Finance Corporation told ET. "It also comes at a fairly lower cost as compared to other domestic funding sources," he said, without disclosing the cost of borrowing. The company's current cost of borrowing is about 10%.

Its parent Motilal Oswal Financial Services is also looking to invest Rs 100 crore of additional equity capital in the mortgage lender in the current financial year. Once the transaction is complete the promoter capital in the firm will go up to Rs 500 crore since its inception in June 2014.

Aspire Fincorp plans to raise Rs 3,000 crore in all from various institutions this fiscal, double that it did last year. Its major funding sources currently are banks and mutual funds. "Once we complete three years we can raise funds from external commercial borrowings as well," Sachidanand said.

Primarily set up to finance low cost housing, Aspire uses all of its funds for retail lending.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.