PNB Housing Finance to fund green housing projects raised 500 crore from World Bank
Punjab National Bank’s home loan arm PNB Housing Finance will now fund green housing projects, the bank has raised funds of Rs 500 crore by issuing bonds to World Bank arm International Finance Corporation (IFC) for funding such projects.
“PNB Housing Finance has issued secured fixed rate NCDs to International Finance Corporation ( IFC) to raise Rs 500 crore for funding green housing projects”, the company said in a release. Further it added that, they are the first housing finance company to successfully issue green bonds.
The funds will be used to finance green housing projects which are certified by recognised green building certification standards, including EDGE certification programme developed by IFC.
“This will further give a fillip to our intent to develop a committed green lending practice in the sector for a sustained growth of green loan portfolio and as environment conservation is a priority area and the end users are also realising the need for creating healthier neighbourhoods” said Sanjaya Gupta, Managing Director, PNB Housing.
“As this fund will be exclusively used to support investments in green energy efficient buildings, the same will help reduce greenhouse emissions and to curb pollution, thus, helping us to establish a market and an ecosystem for green housing construction in India”, said Jayesh Jain, Chief Financial Officer of the company.
PNB Housing has pre-approved more than 62 green projects across Delhi- NCR, Mumbai, Pune and Bengaluru among others. The retail exposure towards green buildings is already around Rs 250 crore, the company further said.