Others

Other Deals

HDFC, ICICI invest Rs.35-Cr each to launch residential mortgage-backed securities venture

Money Control  

HDFC Bank and ICICI Bank have jointly floated a company called RMBS Development Company Ltd (RDCL) to promote the residential mortgage-backed securities market. The two lenders have acquired a 7% stake each in the newly formed company which will have ten banks and financial institutions as its shareholders. Both HDFC Bank and ICICI Bank have invested INR 35 crore each in RDCL, which is expected to be operational by the end of March.The primary objective of RDCL is to promote and develop the RMBS market by investing in besides facilitating investment, issuance, and trade of RMBS, extending credit enhancement (including second loss credit enhancement) for RMBS transactions, and providing liquidity support in the secondary market for RMBS transactions.