HomeFirst issued senior secured, rated, unlisted, redeemable non-convertible debentures with a maximum seven-year maturity in INR, raising Rs 280 crore from IFC.
The money raised will be used to finance retail purchases of affordable housing and green affordable housing units, promote house ownership among low-income groups, and help in the development of green affordable housing, according to a statement from the firm.
Through the advisory engagement and IFC Advisory services, IFC will also provide non-financial support in the form of expertise, innovation, and capacity building as per the provisions of the agreement. IFC will also help to reduce non-commercial risk.
The operationalization of the certification process, the establishment of a capacity for green housing certification, monitoring, and reporting, as well as technical assistance for green housing assessment parameters, are all part of how IFC will help HomeFirst grow its green housing framework.
“IFC estimates a US $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 US $1.4 trillion,” the statement said.
Manoj Viswanathan, MD and 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”.
