International Finance Corporation, the private-sector investment arm of the World Bank, has teamed up with mortgage lender HDFC to create an $800 million (about Rs 5,185 crores) fund dedicated to affordable housing in India.
IFC will pump in $200 million through masala bonds that will be listed on the London Stock Exchange while the rest would come from HDFC.
The fund will support affordable housing projects under the central government’s Pradhan Mantri Awas Yojana, which aims to achieve Prime Minister Modi’s vision of ‘Housing for All’ by 2022.
IFC, a consistent investor in affordable housing in India, has backed developers, formed joint ventures and supported lenders dedicated to the segment. Recently, it agreed to invest $41 million in projects of Delhi-based Ashiana Housing. The developer focuses on affordable, mid-income and senior citizen housing across cities such as Delhi-NCR, Jaipur, Gujarat and Jamshedpur.