MICROCAPITAL BRIEF: IFC Approves $ 250 Million Loan to HDFC for Housing Finance for Low and Middle Income Borrowers in India; 25% allocated to green buildings

0

The International Finance Corporation (IFC), the private investment arm of the World Bank Group, recently approved a $ 250 million loan to Housing Development Finance Corporation Limited (HDFC), an India-based mortgage lender. While ecological housing is “widely regarded as a luxury market in the country”, a quarter of the loan amount is reserved for finance homes with features like solar panels, low-flow water taps and energy-efficient appliances for households earning less than INR 75,000 (1,010) per month.

In addition to improving the living conditions of families, other loan objectives include creating jobs in construction; work towards the Indian government’s vision of “housing for all”; and progress towards India’s goal under the Paris Agreement of “reducing carbon emissions by one third by 2030 from 2005 levels”.

HDFC, which was founded in 1994, offers a range of loan types, including home buying and renovating. The company says it has funded 8.4 million homes since its inception and also holds 1.5 trillion INR ($ 20.7 billion) for depositors as of 2021. Beyond India, it provides consulting services in 18 countries in Asia, Africa and Eastern Europe. The company closed fiscal 2021 with INR 5.7 trillion ($ 77 billion) in assets under management.

IFC provides loans, equity investments, advisory services and technical assistance to private companies with the aim of reducing poverty and promoting open and competitive markets in developing countries. In FY2020, IFC reported total disbursements of $ 26 billion, closing the period with total assets of $ 96 billion.

The World Bank Group is a multilateral organization whose objective is “to end extreme poverty and promote shared prosperity in a sustainable manner”. In 2021, it has 189 member countries. The group includes: (1) the International Bank for Reconstruction and Development and the International Development Association, which constitute the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Center for Settlement of Investment Disputes. During the 12 months ending in June 2020, the World Bank Group has disbursed funds totaling $ 54 billion.

By Arin Atluri, Research Associate

Additional sources and resources

IFC Press Release
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=26526

HDFC Home Page
https://www.hdfc.com/

HDFC Finance
https://www.hdfc.com/sites/default/files/2021-08/press-release-june.pdf

IFC Annual Report 2020
https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/annual+report/download

World Bank Group Home Page
https://www.worldbank.org/

Did you know that MicroCapital publishes the MicroCapital Monitor journal every month? To learn more, visit https://www.microcapital.org/products-page/.

Similar articles:

Leave A Reply

Your email address will not be published.