IFC extends $250 million loan of HDFC for green, affordable housing
- ByStartupStory | July 26, 2021
International Finance Corporation (IFC) has extended a $250 million loan to HDFC Ltd. to support its plan of making affordable housing and emerging green affordable housing portfolio. This move will allow low and middle-income borrowers improved access to finance while supporting the country’s climate goal.
Renu Sud Karnad, Managing Director HDFC, said about the proposal, “the loan will deepen HDFC’s footprint in financing more affordable smart and green homes. This partnership with IFC covering both themes of affordable and green housing, we hope, will materially further our outreach,” she further added.
By now, IFC has invested $920 million in housing finance companies. According to its estimates, there is a $1.25 trillion opportunity in green residential housing up to the year 2020. With most banks and housing finance companies in India still at the stage of evolving their business models to lend to lower-income people, this investment should send a clear demonstration that green affordable housing is viable and needed, especially as India moves on the road to recovery from the impacts of COVID-19,” said Hector Gomez Ang, Regional Director for South Asia at IFC.
HDFC has earmarked at least 25% of this financing for green affordable housing which reduces energy consumption and has a smaller carbon footprint. A joint statement said that the transaction is aimed at changing the positioning of green housing as a concept for the luxury market to include affordable housing.
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