SMBC closes $200m syndicated loan for India’s HUDCO

HUDCO will use the funds to expand its social housing platform.

Sumitomo Mitsui Banking Corporation (SMBC) has closed a $200m syndicated external commercial borrowing for the Housing and Urban Development Corporation (HUDCO) through its Singapore branch.

The transaction was oversubscribed with a total of nine lenders and upsized to JPY30b from the original launch size of JPY15b after exercising the greenshoe option, SMBC said in a press release. 

The deal marks HUDCO’s first move into the syndicated loan market and carries a tenor of five years. 

HUDCO plans to use the funds to further expand its social housing platform, with the aim of improving the Indian community and enhancing infrastructure facilities in urban areas.

SMBC acted as the transaction’s sole mandated lead arranger, bookrunner, and social loan coordinator.

SMBC partnered with HUDCO to develop their social loan framework, which is in line with the latest international sustainable finance standards established by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA) and Syndications and Trading Association (LSTA). 

On other news, Jenius Bank, an American digital bank that is under a subsidiary of Sumitomo Mitsui Financial Group’s (SMBC) American operations, has reached $1b in savings deposits.