Mumbai: Mortgage lender Indiabulls Housing Finance (IBHF) on Tuesday said it has raised Rs1,000 crore from private sector lender Yes Bank in the country’s maiden social affordable housing bond sale.
Money raised through the sale of the five-year bonds will be used exclusively for financing the affordable housing sector, a statement said. It can be noted that the government has set a target of ensuring that there is housing for all by 2022 and given a lot of thrust through incentives for the affordable housing segment.
IBHF’s vice chairman, managing director and chief executive Gagan Banga said the company is focused on the affordable sector with an average home loan size of Rs25 lakh. “We are certain that this issue will act as a catalyst for the Social Bonds market in India and create a benchmark for future issues in this space," Yes Bank’s managing director and chief executive officer (CEO) Rana Kapoor said.
Proceeds from the issue will be used towards financing and refinancing requirements in the ‘affordable housing’ sector in line with applicable laws including lending to individuals and developers under the Pradhan Mantri Awas Yojana, it said.
The bond will conform to the Social Bond Principles 2017 issued by the International Capital Market Association and KPMG will provide assurance services on the use of proceeds, it said.