COMPANY OVERVIEW

Housing Development Finance Corporation (HDFC)

HDFC 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 on July 23, 2008 with the signing of a shareholders’ agreement for privatization between the Government of Maldives, International Finance Corporation (IFC) of the World Bank Group, Asian Development Bank (ADB) and HDFC-Investments Ltd.-India. This Public Private Partnership has a joint foreign investment in 51% of the share capital by IFC, 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%

The July 2008 initiative to restructure the capital and recommence the business of HDFC Plc. became effective on February 10, 2009 with the first equity disbursement by the International Shareholders. IFC and ADB’s commitment extended to a multi-lateral funding facility with seven-year tenure. HDFC-India, with over thirty years of experience in mortgage finance, is the technical partner of HDFC Plc. with assistance from IFC’s Advisory Service Performance Based Grant (ASPBG).

The five-member Directors’ Board comprises of three international nominees and equal number of alternate directors appointed by IFC, ADB and HDFC Investments-India, and two nominees and alternates by the GOM. The Chair to the Board of Directors is by rotation as all directors possess a wide range of talents, skills and experience with proven track records in the field of finance and business administration. They are specially selected for their ability to demonstrate the highest level of knowledge, integrity, and independent judgment in order to direct and guide the formulation and implementation of policies in the interest of all the stakeholders of HDFC Plc.

Having restructured its capital, and with new lines of long-term credit, Housing Development Finance Corporation Plc., Maldives (HDFC) re-entered the financial services market in 2009 to cater to the aspirations of Maldivian citizens to have decent and affordable homes in a safe and healthy environment. HDFC offers its unique services as the only specialized housing finance institution in the Republic of Maldives.