$250 million from the International Finance Corporation (IFC), a member of the World Bank Group.
Announcing the decision on its website, IFC said: “The proposed investment comprises a senior debt investment of up to $250 million in HDFC Ltd (HDFC or the Company). The loan proceeds will be used to provide retail buyers financing for affordable housing with a mutually agreed portion of IFC funding to be earmarked for green affordable housing.”
According to the global financier, the investment will promote greater competitiveness in the financing affordable housing, while expanding HDFC’s green housing portfolio. As part of the initiative, the IFC will also provide HDFC with advice on various aspects of the affordable green housing segment, including its potential, the certifications and a pipeline of potential projects. Moreover, the Washington-based financial service provider will support HDFC’s capacity building exercises by sharing global best practices on the financing of affordable and green building.
The World Bank unit already maintains an active LP portfolio in the South Asian nation, making direct private-equity style investments and providing lending services to companies. The most recent investment by the IFC, along with two of its associate entities, included $124 million in Kerala-based Federal Bank. In June, the organisation also proposed an additional investment of $21.3 million in dairy company Dodla Dairy Ltd, headquartered in Hyderabad, ahead of the companies proposed initial public offering (IPO).
