IFC Extends $85 Million Loan to Dewan Housing Finance
Boost to Affordable and Energy-Efficient Residential Units in India
Mumbai, India - In a significant move to enhance access to affordable and sustainable housing, the International Finance Corporation (IFC), a member of the World Bank Group, has announced an $85 million loan to Dewan Housing Finance Ltd. (DHFL). This financing is supported by the Government of Canada.
Loan Breakdown and Objective
- Loan Components:
- $70 million: Provided by IFC through borrowing
- $15 million: Allocated from the IFC-Canada Climate Change Program for financing green mortgages
- Primary Objective: Facilitate the development of affordable, energy-efficient residential units in India, primarily targeting low and middle-income segments.
Environmental Impact
- Projected Carbon Emissions Reduction: 6,200 tonnes
- Broader Impact: Showcase the benefits of green homes, encouraging the adoption of energy-efficient housing among low and middle-income groups.
Stakeholder Insights
- Kapil Wadhawan, Chairman and Managing Director, Dewan Housing Finance: Highlighted the investment's potential to establish the viability of offering housing finance to low and middle-income clients, thereby promoting affordable homeownership.
Historical Context and Partnership Depth
- Previous Collaboration: IFC provided a $12.5 million loan to Dewan Housing Finance in 2003.
- Co-investment: IFC has also co-invested in Aadhar Housing Finance, a joint venture between DHFL Group and IFC, focusing on affordable home loans for low-income borrowers.
- DHFL's Unique Mission: Established as the second housing finance company in India, DHFL is recognized for its mission of financial inclusion, setting a benchmark in the Indian financial services sector.