Home First Raises Rs 280 Crore In Maiden Green Debt From IFC

Affordable housing focused shadow bank Home First Finance on Friday said that it has raised Rs 280 crore green debt from the International Finance Corporation (IFC), further diversifying its borrowing sources.
     
The funding is through issuance of rupee-denominated, senior secured, rated, unlisted, redeemable non-convertible debentures with a tenor of up to seven years to the World Bank group developmental lender.
     
The proceeds will be used for on-lending to affordable home buyers from green and affordable projects, thus supporting development of green affordable housing, the company said in a statement.
     
Under this arrangement, the IFC will also provide non-financial support in terms of knowledge, innovation and capacity-building through advisory engagements and non-commercial risk mitigation through IFC advisory services. It will also support Home First to develop its green housing framework, including technical support for green housing evaluation parameters, operationalizing certification process and capacity building on green housing certification, monitoring and reporting.
     
IFC estimates a USD 3.1 trillion climate-related investment opportunity from 2018 to 2030 in the country, with green buildings accounting for a major portion of this at USD 1.4 trillion.
     
"We believe this partnership has a strong potential to enhance financial inclusion and green housing," said Manoj Viswanathan, managing director & chief executive of Home First.
     
Home First targets first-time homebuyers in low- and middle-income groups and offers loans for purchasing or constructing homes. It has a network of over 100 branches across 13 states, but mostly concentrated in the cities of Gujarat, Maharashtra, Andhra, Telangana, Karnataka and Tamil Nadu.