IFC lends $250 million to HDFC Ltd to boost green housing finance

HDFC Ltd has got a loan of $250 million from International Finance Corporation (IFC), the investment arm of the World Bank Group, to be used by India’s largest housing finance company for green housing.

Green housing is regarded as a luxury market in the country, but has climate benefits. IFC said its partnership with HDFC would help change perceptions about the market. At least 25 per cent of the funding is for green affordable housing.

 “IFC’s $250 million loan to HDFC Ltd will support its moves to grow its affordable housing and emerging green affordable housing portfolio by improving access to such housing for people on lower incomes. Aligned with the government of India’s goal to provide ‘Housing for All,’ the funding will also help generate jobs,” said the two sides in a joint statement.

Green affordable housing can help India on its path to deliver on its commitments under the Paris Agreement, to reduce a third of its carbon emissions by 2030 from 2005 levels, said Renu Sud Karnad, Managing Director at HDFC Ltd.

“Green and energy-efficient housing can help cut emissions, as residential housing accounts for about 24 percent of the nation’s electricity consumption. This partnership with HDFC offers multiple benefits for India, as it can play a leading role in developing the country’s nascent green affordable housing market while delivering jobs and a climate dividend,” she said.