Dewan Housing Finance gets $85 million from IFC for housing green mortgages

MUMBAI: World Bank group company IFC said it will extend $85 million in loan to Dewan Housing Finance for affordable and energy-efficient housing.

Of the total loan, given with the support of Canada government, IFC will provide $70 million through external commercial borrowing, a press release issued said, adding that the remaining USD 15 million will come from the IFC-Canada climate change programme to financing green mortgages.

The green loan to Dewan will reduce 6,200 tonne carbon emissions per year, the release claimed.

"By demonstrating the benefit of green homes, the project is expected to help home buyers in low and middle income segments buy affordable energy-efficient homes," Serge Devieux, IFC director for South Asia said in the release.

Commenting on the development, Dewan Housing Chairman and Managing Director Kapil Wadhawan said the investment will demonstrate the viability of offering housing finance to low and middle income clients.

IFC, in 2003 also provided a loan of around $12.5 million to Dewan Housing Finance. IFC also co-invested in Aadhar Housing Finance, a company jointly promoted by DHFL Group and IFC, which provides affordable home loans to low income borrowers.