International Finance Corporation (IFC), member of the World Bank Group, is about to enter into a pact with PNB Housing Finance to form a platform worth $800 milion, to support construction of environment-friendly affordable homes.
This is the second such platform to be formed by IFC after partnering with HDFC in November. The platform set up with India’s largest mortgage lender was also worth $800 million to support construction of affordable homes.
PNB Housing Finance will put up $400 million, from issue of Masala Bonds to match the amount provided and mobilised by IFC, taking the total to $800 million.
“We are keen to demonstrate that affordable homes can be a sustainable business venture. That will encourage the private sector to come in and help achieve the country’s goal of ‘housing for all by 2022’. In the near term, we also want to align affordable homes with green homes, so that this leads to green growth,” said Mengistu Alemayehu, South Asia director, IFC.
Affordable housing has been a key strategic priority for the Indian government as also for IFC. Prime Minister Narendra Modi has set the goal for ‘Housing for All by 2022’.