PNB Housing raises Rs 500 cr from IFC to finance Green Projects

PNB Housing Finance Limited, has issued secured fixed rate NCDs to International Finance Corporation (IFC) to raise Rs 500 crore for funding Green Residential projects. PNB Housing claims that it will be first housing finance company (HFC) to issue Green Bonds.

The funds will be used to finance green residential projects which are certified by recognised green building certification standards, including EDGE (certification programme developed by IFC).

Sanjaya Gupta, Managing Director, PNB Housing Financial Ltd in a statement said that this will further give a fillip to our intent to develop a committed green lending practice in the sector for a sustained growth of green loan portfolio.

"This is a landmark transaction in the realm of green infrastructure financing in India and will foster a change in housing sector's approach towards climate change, environment protection and healthier living".

Jayesh Jain, Chief Financial Officer, PNB Housing Finance Limited added, as this fund will be exclusively used to support investments in green energy efficient buildings, the same will help reduce greenhouse emissions and to curb pollution, thus, helping us to establish a market and an ecosystem for green housing construction in India.

PNB Housing has pre-approved more than 62 green projects across Delhi-NCR, Mumbai, Pune and Bengaluru to name a few. The retail exposure towards green buildings is already around Rs 250 crore.