According to IFC website, the project envisages a debt investment in Housing Development Finance Corporation Limited. which is the largest private sectorHousing Finance Company (HFC) in India, headquartered in Mumbai, Maharashtra with a customer base of 5.7 million customers and a loan portfolio of approximately INR2.8 trillion (US$42billion equivalent) as of December 2016. The investment proceeds from the proposed project by IFC would be used to support HDFC for on-lending to developers of affordable housing projects in India. The project has the following expected development impacts:
1. Increase supply of affordable housing: India does not yet have a vibrant affordable housing market. While the shortage is huge (estimated at about 19 million units in urban areas), the supply of stock is still low. In this respect, the proposed project will create a large dedicated pool of funding that would help jumpstart the market with a big impact.
2. Demonstration Effect: Partnering through the proposed project, IFC and HDFC expect that this demonstration would encourage other like-minded HFCs, FIs, banks and investment funds to follow suit and produce impact, much bigger than the direct funding of the proposed project.
3. Job Creation: Real Estate and construction is one of the largest job creators in India. India is estimated to need around 76.5 million workers in the building, construction and real estate sector by 2022, with demand for affordable housing is more likely to increase from current level of 29 million households to more than 38 million households by 2030.
Incorporated in October 1977, HDFC is the first specialized HFC in India and also the largest in the private sector. HDFC, through group companies, also has interests in Banking, Insurance (Life and General), Asset Management, Realty, Real Estate Venture Capital, Education Loans among others. The Company has a diversified public shareholding.
It is the largest private sectorHousing Finance Company (HFC) in India, headquartered in Mumbai, Maharashtra with a customer base of5.7 million customers and a loan portfolio of approximately INR2.8 trillion (US$42billion equivalent) as of December 2016.
No contact information provided at the time of disclosure.
ACCOUNTABILITY MECHANISM OF IFC
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