DBS Bank Leads $100-Million Syndicated Loan For HDFC Credila

DBS Bank Ltd. has completed a syndicated external commercial borrowing loan worth $100 million for HDFC Credila Financial Services Ltd. The lender is the only mandated lead arranger and book-runner for the loan through the DBS IFSC banking unit in Gujarat International Finance Tec-City.

The loan to HDFC Credila is required for capital requirements to cater to increased demand for education loans in India.

"The loan will be utilised by HDFC Credila to diversify its funding resources and reinforce its prominent position in the education finance sector," the bank said in a press release on Tuesday.

"DBS Bank acted as the exclusive structurer and arranger of the transaction, leading the end-to-end market scoping, credit analysis, due diligence, transaction structuring and execution as a part of the deal process," it said.

In March, HDFC Bank sold its stake in HDFC Credila to private equity companies, BPEA EQT and ChrysCapital. This came after the Reserve Bank of India had directed HDFC Bank last April to trim down its shareholding in HDFC Credila, the education loan subsidiary, to 10% within two years of the merger with Housing Development Finance Corp.