News 56

PNB Housing Finance to raise $75mn from IFC

PNB_LogoPNB Housing Finance Ltd, promoted by Punjab National Bank, will raise $75 million from International Finance Corporation (IFC). The investment will be done by subscription to a secured floating rate non-convertible debenture (NCD) issued by the company.

IFC said, “The funds will be used to finance construction of green residential apartments/buildings that are certified by recognised green building certification standards, including EDGE (certification programme developed by IFC).

IFC also said that the investment will provide a dedicated credit line for on-lending to developers of green housing and thereby help develop a dedicated green lending practice within the company. This would lead to sustained growth of the green loan book as against a one-off endeavor.

“IFC’s significant investment in the NCDs for green housing will encourage other investors to invest in other similar issuances by the Company and other like-minded HFCs,” the Corporation added.

The World Bank’s investment arm’s EDGE Building programme is focused on scaling up green buildings and has been launched in 100 developing countries. The programme leverages IFC’s green buildings investments to initiate a virtuous circle of supply and demand.

The proposed investment is expected to generate significant environmental and economic benefits through the development of energy-efficient housing-construction projects. The investment is expected to reduce 1500 MT of GHG emissions per annum and would also help establish a market and an ecosystem for green-housing construction in India.

IFC has invested nearly $1 billion, either directly or via intermediaries, in green buildings in the last three years.

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