HomeFirst has raised ₹280 crore from International Finance Corp. (IFC), a member of World Bank Grou,p through the issuance of rupee-denominated, senior secured, rated, unlisted, redeemable non-convertible debentures with a tenor of up to seven years.
The proceeds will be used to provide financing for retail buyers of affordable housing and green affordable housing units, encouraging home ownership for low-income segments, and supporting the development of green affordable housing, a statement from the company said.
Under the arrangement, IFC will also provide non-financial support in terms of knowledge, innovation and capacity building through advisory engagement and non-commercial risk mitigation through IFC Advisory services.
IFC will support HomeFirst in developing its green housing framework, including technical support for green housing evaluation parameters, operationalizing the certification process and capacity building on green housing certification, monitoring and reporting.
“IFC estimates a $3.1 trillion climate-related investment opportunity for India between 2018 to 2030, with green buildings accounting for a major portion of this opportunity at $1.4 trillion,” the company said.
Commenting on the agreement, Manoj Viswanathan, MD & CEO, said, “We are pleased to partner with IFC, a reputed multi-lateral agency and a member of the prestigious World Bank Group to further our mission ‘to be the fastest provider of home finance for the aspiring middle class, delivered with ease and transparency.’“
“This is a huge vote of confidence for HomeFirst’s business model and its strong risk-management process. We believe this partnership has a strong potential to enhance financial inclusion and Green Housing in India,” he added.
