HomeFirst Raises Rs 280 Crore from IFC

Home First Finance Company India Ltd (HomeFirst) has raised Rs 280 crore from IFC, through the issuance of rupee-denominated, senior secured, rated, unlisted, redeemable Non-Convertible Debentures (NCDs) with up to 7-year tenor.
 
Commenting on the agreement, Manoj Viswanathan, MD & CEO of Home First Finance Company India Ltd, said “we are pleased to partner with IFC, a reputed multi-lateral agency and a member of the prestigious World Bank Group to further our mission ‘to be the fastest provider of home finance for the aspiring middle class, delivered with ease and transparency.’ This is a huge vote of confidence for HomeFirst’s business model and its strong risk-management process. We believe this partnership has a strong potential to enhance financial inclusion and Green Housing in India.”
 
The proceeds will be utilized to provide financing for retail buyers of affordable housing and green affordable housing units, encouraging homeownership for low-income segments, and supporting the development of green affordable housing.
 
Under the arrangement, IFC will also provide non-financial support in terms of knowledge, innovation and capacity building through advisory engagement and non-commercial risk mitigation through IFC Advisory services.
 
It will support HomeFirst in developing its green housing framework, including technical support for green housing evaluation parameters, operationalizing the certification process and capacity building on green housing certification, monitoring and reporting.
 
IFC estimated a USD 3.1 trillion climate-related investment opportunity for India between 2018 to 2030, with green buildings accounting for a major portion of this opportunity at USD 1.4 trillion.
 
HomeFirst is a technology-driven affordable housing finance company targeting first time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes. The company has deep penetration in the largest housing finance markets with a network of 101 branches and distribution across 13 States/ UT in India, with a significant presence in urbanized regions in the states of Gujarat, Maharashtra, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.