US International Development Finance Corp. provides a $50 million credit to IIFL Home Finance

17 Jul 2023 , 11:06 AM

In order to expand its portfolio of affordable home financing, IIFL Home Finance has secured a $50 million loan from the US International Development Finance Corp (DFC). This loan will specifically target sustainable housing.

According to Monu Ratra, chief executive of IIFL Home Finance, who spoke to ET, the capital was raised at a favorable rate of 5.72%, which includes the cost of hedging. Its funding cost on average is 8.4%.

The transaction symbolizes the increased confidence that foreign investors have in India’s rapidly expanding affordable housing market.

For the second time this year, the mortgage lender is increasing debt. It obtained $68 million from the Asian Development Bank in January.

‘Affordable housing is one of the areas where foreign investors, particularly development financial institutions, believe they can have the most influence in developing nations. Therefore, their investment in this area is fully consistent with their social development objectives of creating sustainable cities and communities and taking climate action, according to Ratra.

A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) paid roughly Rs 2,200 crore for a 20% share in IIFL Home Finance last year.

The mortgage lender, a division of IIFL Finance, primarily serves lower-income and economically disadvantaged people. It had Rs 29,595 crore in assets under management at the end of June. More than three-fourths of this comes through home loans. Its other lending verticals include loans against property to small businesses and development financing.

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