IIFL Home Finance on Friday said it signed a $300 million loan agreement with the Asian Development Bank (ADB) to strengthen access to affordable housing finance for lower-income borrowers, particularly women in India.
The loan marks IIFL Home Finance’s first syndicated external commercial borrowing (ECB). The financing package, led by ADB as the mandated lead arranger and bookrunner, comprises $150 million from ADB and $150 million in parallel loans from MUFG, Emirates Bank, Sampath Bank and Hatton National Bank.
IIFL Home Finance will on-lend the loan proceeds to provide mortgages to women in low-income communities in peri-urban and urban areas and in lagging states of India, including a target of over 25 per cent of the loan proceeds for green-certified affordable homes.
Girish Kousgi, Managing Director and CEO of IIFL Home Finance, said, “ADB’s funding will help extend affordable housing to deeper markets and support the homeownership aspirations of low-income and economically weaker families, especially women. We are glad to partner once again with ADB, who have constantly supported our growth and refinancing journey, and welcome the addition of new international partner banks to our lender relationships.”
“India’s affordable housing deficit is most pronounced among economically weaker and low-income households, particularly women, who constitute only 13 per cent of homeowners. Addressing this gap necessitates the adoption of sustainable and climate-resilient construction practices,” said ADB Country Director for India, Mio Oka. “We are pleased to support IIFL HFL’s leadership in expanding access to low-income women homeowners while advancing affordable, green-certified housing.”
India is experiencing a severe housing shortage estimated at 31 million units by 2030, which mostly affects low-income groups. They face several challenges in obtaining mortgages, including a lack of documents to prove their incomes.
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