By Accommodation Times News Services
Repco Home Finance Ltd (RHFL) a housing finance providers major in South India in an attempt to commence its operation in other states and increase their lending, has proposed to raise funds of around Rs. 266 crore by issuing non-convertible debentures (NCDs) to International Finance Corporation (IFC), the lending arm of the World Bank.
With this investment the RHFL will be able to provide affordable housing loans and support the company to increase its reach and penetration, especially in the low tier II and tier III cities in states outside of South India.
RHFL is a housing finance company registered with National Housing Bank which commenced operations in 2000. The company is promoted by Repco Bank, a multi- state cooperative society, which owns 37.14% of RHFL, while the balance is held by domestic and foreign investors.
As of April 2015, RHFL has a network of 106 branches and 36 satellite centres in Tamil Nadu, Andhra Pradesh, Telangana, Jharkhand, Kerala, Karnataka, Maharashtra, Madhya Pradesh, Gujarat, Odisha, West Bengal and Puducherry.
IFC’s proposed investment in RHFL is in line with the World Bank group’s India country partnership strategy as it aligns with the engagement areas of Inclusion, by improving access to affordable housing finance and enhancing investment in the low income states, Transformation, through job creation by supporting the labor intensive affordable housing segment and Integration, giving increased access to financial services in tier II and tier III cities.