PNB arm to raise fund for housing
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.