PNB arm to raise fund for hous­ing

HT Estates - - FRONT PAGE - Am­rit Raj am­[email protected]

MUM­BAI: PNB Hous­ing Fi­nance Lt­d­hastiedup­with­In­ter­na­tional Fi­nance Cor­po­ra­tion (IFC), part of theWorldBankGroup, to raise $800 mil­lion for greenandaf­ford­able hous­ing in In­dia, said a per­son­with­knowl­ed­ge­ofthe­mat­ter.

IFCisin­nego­ti­a­tions withtwo other hous­ing fi­nance firms to in­vest an­other $150 mil­lion, as well as with prop­erty de­vel­op­ers to as­sist the Prad­han Mantri Awas Yo­jana (PMAY) from both the de­man­dand­sup­ply­sides, the per­son­said, re­quest­ing anonymity.

The­move­come­sasabig­boost to Prime Min­is­ter Naren­dra Modi’s hous­ing for all schemeby 2022. Un­der PMAY, the gov­ern­ment of­fers in­ter­est sub­sidy of 6.5% to eco­nom­i­cal­ly­weak­er­sec­tions on their home loans. The scheme is for peo­ple with an an­nual in­come up to Rs3 lakh.

Asperthedeal­with­PNBHous­ing, IFC will make $400 mil­lion avail­able for the new fa­cil­ity, of which$150 mil­lion will beits own money and the rest will be mo­bi­lized from other sources. All of this mon­ey­will­beraisedthrough masala bonds is­sued by PNB Hous­ing. Masala bonds are ru­pee-de­nom­i­nat­ed­bond­sis­sued in off­shore cap­i­tal mar­kets.

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