HDFC receives $400 million loan to finance green affordable housing units

HDFC receives $400 million loan to finance green housing units

HDFC has spent 75% or $300 million to fund green housing units. (File)


The International Finance Corporation (IFC) has extended a $400 million large HDFC mortgage loan to finance green affordable housing units, as part of their efforts to support the climate goals.

The companies in separate statements today said the loan will help close the urban housing gap and improve access to climate-smart affordable housing by promoting green housing, which This will assist the country in transitioning to a more sustainable growth path, creating jobs and ensuring long-term business growth.

HDFC says it has spent 75% of the equivalent of $300 million in IFC funding to fund green affordable housing units.

It is estimated that 275 million people in the country or 22 percent of the more than 1.4 billion population do not have access to adequate housing and lack twice as much housing in rural areas as in urban areas. As of 2018, the urban housing shortage was 29 million units, an increase of more than 54% since 2012.

“With our long-term partnership, we welcome IFC’s expertise to help strengthen our green affordable housing portfolio. We look forward to strengthening our footprint in home financing. green and affordable housing, and is committed to supporting the nation’s efforts for a sustainable and green, low-cost economy. -carbon economy,” said Renu Sud Karnad, chief executive officer of HDFC, cited in the statement.

This timely investment will help strengthen HDFC’s efforts to serve underserved populations, promote economic resilience and support the government’s vision, she added. housing for everyone.

Housing accounts for about 24% of the country’s electricity consumption. In line with the climate commitments under the Paris agreement and at the COP-27 climate change conference in Sharm el-Sheikh, the green affordable housing sector is key to reducing greenhouse gas emissions through consumption. lower household energy and greener building activities, among others.

With a growing demand for affordable housing and a largely under-penetrated market, IFC’s loan to HDFC highlights the fact that lending to underserved populations is feasible.

Since 2010, IFC has lent more than $1.7 billion to domestic housing finance companies to retail buyers as well as developers of green and affordable housing.

(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)

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