The proposed project consists of senior financing to L&T Housing Finance Limited (L&TH or the Company). The proceeds will be used to finance developers of affordable housing as per the criteria specified in the Pradhan Mantri Awas Yojna, scheme of the Government of India that aims for “Housing for All” by 2022.

L&TH is a Housing Finance Company registered under the National Housing Bank. The Company serves the housing and real estate finance segments. As of Sep/17, the Company held US$1.6 billion in assets.

1. Support to the affordable housing market: The project will increase access to affordable housing by supporting the financing of developers engaged in the affordable housing segment.

2. Job creation: Construction industry is one of the largest job creators in India. By supporting the expansion of housing finance this project will also contribute to job creation in India.

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.

L&T Housing Finance Limited is a wholly owned subsidiary of L&T Finance Holdings Limited (L&TF), the financial services arm of Larsen and Toubro Limited (L&T). L&TF, through its operating companies, is engaged in rural, housing and wholesale/infrastructure finance as well as investment and wealth management. L&TF services about 12 million customers with pan-India presence. It reports an asset base of over US$10 billion. LTF’s largest shareholder is Larsen and Toubro Limited which is a major global technology, engineering, construction, manufacturing and financial services conglomerate.

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/