DFP DREAM Fund (IFC-47649)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
HDFC Capital Advisors Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,000.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 17, 2024

Disclosed by Bank Jul 31, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed project entails an IFC investment of up to US$ 150 million in HDFC Capital Development of Real Estate Affordable and Mid-Income Fund – 1 by HDFC Capital AIF – 4 (“H-DREAM Fund”), an innovative fund focused on investing in senior, secured green loans and other debt instruments issued by developers of for-sale, green residential real estate. The H-DREAM Fund will have a target corpus of US$ 1 billion (US$ 500 million with a green shoe of US$ 500 million) and will be managed by the real estate private equity arm of HDFC Group, HDFC Capital Advisors Limited (HDFC Capital). The H-DREAM Fund will be established as a SEBI Category II Alternate Investment Fund (“AIF”). The residential housing projects financed by the H-DREAM Fund will adhere to the IFC Excellence in Design for Greater Efficiencies (“EDGE”) green building framework and will be focused on the affordable and mid-income housing segments in Tier 1 and Tier 2 cities across India.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Fund will provide debt financing to developers of affordable and mid-income residential real estate projects in India. The Fund will not invest in any higher risk activities that may include involuntary resettlement, risk of adverse impacts on indigenous peoples, significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, risk of significant retrenchment or significant occupational health and safety risks. The Fund will also not invest in activities on IFC Exclusion List, coal related projects, and any slum-rehabilitation projects. The main E&S risks and potential impacts of the project relate to the ability of the Fund's Investment Manager to i) assess E&S risks associated with its financing/ investments, ii) cascade the requirements for managing these risks at the investee/borrower company’s level, and iii) monitor their implementation. Overall, the E&S risk of the proposed investment is medium, and the project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Fund will have a target corpus of US$ 1 billion (US$ 500 million with a green shoe of US$ 500 million) with HDFC Capital commitment of up to US$ 50 million (5% of fund size). IFC’s investment will comprise the lower of US$ 150 million or up to 20% of the capital raised.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Fund Manager - HDFC Capital, is the real estate private equity arm of the HDFC Group, focused on providing private capital to developers of residential real estate in India. HDFC Capital has deep experience in real estate investment and has raised in excess of US$ 3.2 billion through four real estate funds.

HDFC Capital is owned by HDFC Bank (90.0%) and Abu Dhabi Investment Authority (10.0%). HDFC Bank is the largest private sector bank and second largest bank in India with a consolidated asset base of US$ 483 billion as of June 30th, 2024. Abu Dhabi Investment Authority is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - HDFC Capital Advisors Limited Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

HDFC Capital Advisors Ltd
Vipul Roongta
Managing Director & CEO
+91-22-6141 3951
vipulr@hdfccapital.com
6th floor, Ramon House, H.T. Parekh Marg, 169 Backbay Reclamation, Churchgate, Mumbai – 400 020
www.hdfccapital.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works