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. 

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

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

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/