Mortgage lender Indiabulls Housing Finance (IBHF), on January 2, 2018, said it has raised Rs 1,000 crores from private sector lender Yes Bank, in the country’s maiden social affordable housing bond sale. The money raised through the sale of the five-year bonds, will be used exclusively for financing the affordable housing sector, a statement said.
IBHF’s vice-chairman, managing director and chief executive, Gagan Banga said the company was focused on the affordable sector, with an average home loan size of Rs 25 lakhs. “We are certain that this issue will act as a catalyst for the social bonds market in India and create a benchmark for future issues in this space,” Yes Bank’s managing director and chief executive, Rana Kapoor said.
Proceeds from the issue will be used towards financing and refinancing requirements in the ‘affordable housing’ sector, in line with applicable laws including lending to individuals and developers under the Pradhan Mantri Awas Yojana, it said.
The bond will conform to the Social Bond Principles 2017, issued by the International Capital Market Association and KPMG will provide assurance services on the use of proceeds, it said.