Sundaram HFC to raise Rs.240 crore from IFC for financing affordable housing

By Accommodation Times News Services

homeloanSundaram BNP Paribas Home Finance (SHF) is expanding its home loan operations in major states of India like Rajasthan, Madhya Pradesh, Odisha and West Bengal and it is further planning to extent its presence in rural areas and provide finance for affordable housing.

To expand its business the company is going to raise over Rs 450 crore from the World Bank investment arm International Finance Corporation (IFC), in partnership with PTC India Financial Services (PSF).

The IFC said, it would subscribe to listed, redeemable, secured 10-year non-convertible debentures of up to $35 million to be issued by PFS under the foreign institutional investor (FII) route.

While, Sundaram BNP Paribas Home Finance (SHF) is proposing to raise up to Rs 240 crore from IFC, through subscription of its senior secured non-convertible debentures.

“IFC’s proposed investment will support the company to increase penetration in financing affordable housing in existing states of operation as well as the low-income states that are being targeted for expansion,” said IFC.

PFS is categorised as an infrastructure finance company by the Reserve Bank of India. It is focused on funding projects in the energy value chain in India.

Subscription of non-convertible debentures to be issued by PFS would allow it to utilise these funds to increase investments in renewable energy, including solar and wind projects, said IFC.

SHF’s Headquartered in Chennai, has a strong distribution network of 104 branches in 10 states, with focus on Tamil Nadu, AP, Karnataka and Kerala. It has expansion plans in tier II and III cities of India.

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