As stated by the IFC, the proposed project envisages an Indian Rupee denominated investment of up to US$75 million equivalent in Aavas Financiers Limited, an existing debt client of IFC. The investment will be made by subscribing to the non convertible debentures to be issued by Aavas with a tenor of 5 years. Aavas will use the proceeds of the issuance for providing affordable housing finance for the purchase/construction and extension of houses to individuals in low-income groups in India. The Company is in an advisory project with IFC to help develop its green affordable housing business, and there are discussions underway to use part of the IFC proceeds for financing retail purchases of green housing.
The IFC categorized the project as FI-3.
As stated by the IFC, Aavas is a housing finance company that is supervised by the National Housing Bank and regulated by the Reserve Bank of India (RBI). The Company was a subsidiary of AU Small Finance Bank, an IFC equity client, which sold a majority of its stake in the Company to two private equity investors - Kedaara Capital and Partners Group in 2016 to comply with the RBI guidelines. Aavas is listed on the National Stock Exchange and Bombay Stock Exchange. Kedaara Capital and Partners Group held a stake of ~23% and ~16% in Aavas as of September 30, 2023 respectively.
General IFC Inquiries - IFC Communications:
Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384
Financial Intermediary - Aavas Financiers Limited:
Mr. Ghanshyam Rawat - President & Chief Financial Officer
Location: Mansarovar Industrial Area, Jaipur district, Rajasthan, India
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