IFC-PNBHF forms $ 800-mn housing platform

In a bid to inject the much needed booster to the affordable housing segment in the country, International Finance Corporation (IFC) has decided to enter into a pact with PNB Housing Finance to form an $800-million platform to support construction of environment-friendly affordable houses across the country. The IFC, which is a member of the World Bank Group, with this initiative will help mobilize over $1.6 billion for affordable housing segment in the next few months. This is the second such platform to be formed by IFC after partnering with HDFC in the recent past. The platform set up with India‘s largest mortgage lender has set aside the staggering sum to support construction of affordable housing units. According to the alliance with PNB Housing Finance, IFC will make $400 million available for the new facility, of which $150 million will be its own money and the rest will be mobilized from other sources. However, IFC will not underwrite the balance amount. The amount worth $400 million will come through an issue of Masala Bonds, which will be PNB Housing Finance‘s first such issue. The entire targeted amount will be used to finance retail home buyers and developers of affordable homes as per the Pradhan Mantri Awas Yojana and also developers of environment-friendly green buildings, said official sources.