IIFL HFL, has signed a USD 68 million loan with Asian Development Bank (ADB) to improve funding to affordable green housing for lower-income groups in India.
The funding comprises a direct ADB loan of up to USD 58 million and a USD 10 million concessional loan by the Canadian Climate Fund for the Private Sector in Asia (CFPS). As per the press release, from ADB’s loan, 80% will be earmarked for lending to women borrowers or co-borrowers and 20% will be allocated to financing mortgages for green-certified homes.
Speaking on the agreement Monu Ratra, MD & CEO, IIFL HFL said, “Funding from ADB will help us to improve the penetration of green affordable housing in deeper markets of India and fulfil the dreams of many Indian families to own their own homes. We are glad to be partnering with ADB in our growth journey.”
To accelerate initiatives that improve access to green affordable housing for meeting the targets of Sustainable Development Goals 2030, it is important to actively pursue issues related to climate resilience, sustainability-orientated thinking and the achievement of gender-balance as fundamental approaches to development. Additionally there is a need to address lack of awareness around green homes.
“By leveraging IIFL HFL’s focus on financial inclusion and CPFS’ leadership on climate-resilient housing, ADB can help low-income communities to manage the impacts of climate change,” said ADB Director General, Private Sector Operations, Suzanne Gaboury. “We are pleased to support IIFL in demonstrating to the construction industry that you can build both affordable and green-certified housing for low-income households.”
According to the press release, this is ADB’s first such private sector agreement in the country and aiming to enable activities addressing some of the key identified obstacles for building the ecosystem for green certified and affordable housing. As per IIFL Home Finance, the company has already been propagating green affordable housing in India through its platform ‘Kutumb’, which is a green building initiative addressing the affordable housing projects regarding issues relating to financing, technical know-how of green construction and certification and Environmental, Social and Governance (ESG) compliance.
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