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:
- 49% Government of Maldives
- 18% International Finance Corporation
- 18% Asian Development Bank
- 15% HDFC Investments Ltd. (India)
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 multilateral funding facility with seven-year tenure. HDFC Ltd of 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).
Having restructured its capital, and with new lines of long-term credit, Housing Development Finance Corporation Plc., Maldives (HDFC) re-entered the market for mortgage loans for housing needs of individuals and families. HDFC is unique as the only specialized housing finance institution in the Maldives. HDFC offers both conventional and Islamic housing finance facilities with affordability, flexibility, longest repayment period and highest quality of service in the Maldives. HDFC made one of the biggest contributions to the development of the housing market in the Maldives by establishing the legal structure for title registration and sale of apartments to promote homeownership through mortgage finance.