Abu Dhabi Investment Authority ( ADIA)-backed IIFL Home Finance has raised a $100 million loan from Asian Infrastructure Investment Bank ( AIIB) for on-lending to India's economically weaker segments and to builders of low-cost apartments.
This is the first funding by AIIB to the mortgage lender, IIFL Home Finance chief executive Monu Ratra told ET.
"The ECB from AIIB is unique in the sense that we can fund developers who are building affordable homes. This will address the dearth of affordable homes in locations where demand continues to be robust. Apart from this we can use these funds for retail affordable home loans," Ratra said.
The loan is raised for five years with an all-inclusive cost of 8.58% a year. There is a 1.5 years of moratorium on principal payments and thereafter six monthly equal principal repayment for 3.5 years.
The funding will promote green building practices aligned with India’s climate goals, AIIB said.
“This investment reflects AIIB’s commitment to inclusive and sustainable infrastructure," said Gregory Liu, director general of AIIB’s financial institutions and funds clients department. “By partnering with IIFLHF, AIIB is helping to advance India’s green building agenda while bridging the housing gap for low-income families in India,” he said in a note published in the company's website.
AIIB began operations in 2016, now has 110 full and approved members worldwide, and is capitalized at $100 billion. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
This is the second ECB raised by IIFL Home Finance this fiscal. The mortgage lender has around Rs 40000 crore assets under management. Affordable housing loans contribute about two-third of the AUM.
IIFL Home Finance is 79.59% owned by IIFL Finance while the balance 20.41% is held by ADIA.
With a network of 376 branches across 18 states, it focuses on underserved and emerging geographies, including the suburbs of tier 1 cities and tier 2 to tier 4 towns.
This is the first funding by AIIB to the mortgage lender, IIFL Home Finance chief executive Monu Ratra told ET.
"The ECB from AIIB is unique in the sense that we can fund developers who are building affordable homes. This will address the dearth of affordable homes in locations where demand continues to be robust. Apart from this we can use these funds for retail affordable home loans," Ratra said.
The loan is raised for five years with an all-inclusive cost of 8.58% a year. There is a 1.5 years of moratorium on principal payments and thereafter six monthly equal principal repayment for 3.5 years.
The funding will promote green building practices aligned with India’s climate goals, AIIB said.
“This investment reflects AIIB’s commitment to inclusive and sustainable infrastructure," said Gregory Liu, director general of AIIB’s financial institutions and funds clients department. “By partnering with IIFLHF, AIIB is helping to advance India’s green building agenda while bridging the housing gap for low-income families in India,” he said in a note published in the company's website.
AIIB began operations in 2016, now has 110 full and approved members worldwide, and is capitalized at $100 billion. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
This is the second ECB raised by IIFL Home Finance this fiscal. The mortgage lender has around Rs 40000 crore assets under management. Affordable housing loans contribute about two-third of the AUM.
IIFL Home Finance is 79.59% owned by IIFL Finance while the balance 20.41% is held by ADIA.
With a network of 376 branches across 18 states, it focuses on underserved and emerging geographies, including the suburbs of tier 1 cities and tier 2 to tier 4 towns.
You may also like
3rd Test: Kumble says keeping England under 300 is key
Odisha: Chief Manager (Mining) MCL in CBI net over graft charges
33 best Amazon Prime Day deals on tried-and-tested products our experts love
ED probes Chhangur Baba's assets, accounts in UP religious conversion case
India to host major international shooting events in next three years
