World Bank's IFC to Invest in Housing Development Finance Corporation
World Bank's International Finance Corporation (IFC) will make a debt investment of up to $250 million (approximately Rs 186 crore) in Housing Development Finance Corporation (HDFC). “The proposed investment comprises a senior debt investment of up to $250 million in HDFC Ltd (HDFC or the Company). The loan proceeds will be used to provide retail buyers financing for affordable housing with a mutually agreed portion of IFC funding to be earmarked for green affordable housing,” IFC announced on its website. Specifically, IFC said it will advise HDFC on many aspects of the affordable green housing segment including its potential and impact, the certifications and potential pipeline of projects, as it continues to build a commercially viable green affordable housing asset class. In line with the Indian government’s "Housing for All by 2022" initiative, the most significant, expected project-level outcome is increased access to financing for affordable housing for lower and middle-income segments, IFC stated. The project will also support HDFC in gradually growing its nascent green housing portfolio. Beyond the project, IFC anticipates that the investment, together with other IFC's efforts in the segment, will help promote greater competitiveness in affordable housing financing via demonstration and replication channels. Under the partnership, IFC will share global best practices in affordable and green building financing by conducting workshops/case study walk throughs from other countries and support HDFC’s capacity building exercises for the Company to successfully identify and expand into this affordable green housing segment.
Tags : ALLIED Housing World Bank HDFC IFC development finance invest Affordable Green Housing Corporation