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Piramal Capital & Housing to raise $150 million from IFC

IFC's loan will be utilized for on-lending to the retail housing finance sector

T E Narasimhan  |  Chennai 

Ajay Piramal, Piramal Housing Finance
Ajay Piramal, chairman, Piramal Enterprises

International Finance Corporation (IFC) has proposed to invest up to $150 million in Finance Limited (PCHFL), a housing finance company.

The investment will be in the form of senior debt investment. In addition, would assist in mobilising up to an additional $200 million through Parallel Loans, said

IFC's loan will be utilized for on-lending to the retail

IFC's $150 million of credit line with a tenor of 5 years would help in their endeavour to diversify their long-term sources of funds and access the international market.

is acting as an anchor investor to syndicate up to an additional $200 million will help the Company's positioning in the foreign market.

IFC's investment in the housing finance sector, which has been negatively impacted by liquidity constraints in the recent past, will signal IFC's continued confidence in the sector and is likely to support its normalisation.

IFC's support to is aimed at supporting PCHFL's strategic intention to grow its affordable housing portfolio in a significant way in the near term, said the World Bank's investment arm.

PCHFL is a 100 per cent owned subsidiary of Ajay Piramal-promoted Piramal Enterprises Limited (PEL). Key shareholders of PEL other than the Promoter Group include East Bridge Capital Master Fund & I Limited (6.3%), Life Insurance Corporation of India (3.48%) and Aberdeen Global Indian Equity Limited (1.3%).

First Published: Tue, April 09 2019. 08:18 IST