According to IFC website, IFC proposes to invest up to US$20 mn through subscription of Non-Convertible Debentures issued by Aavas Financiers Limited (AFL), formerly known as Au Housing Finance Limited. The proceeds of proposed IFC’s financing will be utilized by AFL for supporting affordable housing finance for purchase / construction & extension of house to individual under low and medium income group in Rajasthan (a low income state) and nearby 5 states. AFL’s customers include dairy farmers, carpenters, garment traders, artisans, etc. Currently, almost 65% of AFL’s customers are self-employed.
1. Increased housing finance access in Low Income States: AFL is focused on providing access to housing finance to low-mid income borrowers in tier II /tier III/tier IV and peripheries of tier I cities, with 57% of its outstanding book in the low income states of Rajasthan and Madhya Pradesh.
2. Increased housing finance access to self-employed and low income segment: AFL is focused on providing access to housing finance to low income borrowers, specifically those employed in the informal sector such as self-employed micro-entrepreneurs and un-organized sector salaried workers.
3. Job Creation: There is high demand for affordable housing, particularly in rural and semi-urban areas. The expansion of housing finance has a trickledown effect on job creation through the growth of the multiple industries
Established in 2011, Aavas Financiers Limited (AFL) was incorporated as a wholly owned subsidiary of Au Financiers Ltd. (Au), currently known as Au Small Finance Bank Limited. As part of its Small Finance Bank transformation process, Au sold its substantial stake in AFL. The company’s current shareholders include Kedaara Capital, Partners Group, Au, and the management team.
The Company is led by Mr. Sushil Agarwal, CEO, who is a senior banker with over 15 years of experience in housing and SME finance.
Project Contact: Mr. Ghanshyam Rawat
CFO, Aavas Financiers Limited
Contact No.: 0091-141-3910000
Email Address: firstname.lastname@example.org
Office Address: 201-202, 2nd Floor, Southend Square, Mansarovar Industrial Area, Jaipur - 302020, India
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