The Abu Dhabi Investment Authority (ADIA)-backed IIFL Home Finance has secured a $100 million loan from the Asian Infrastructure Investment Bank (AIIB). This funding aims to support economically weaker segments in India and assist builders of low-cost housing.
This marks AIIB’s first funding to IIFL Home Finance, as reported by CEO Monu Ratra.
“The ECB from AIIB is noteworthy because we can finance developers focused on affordable housing. This will help address the shortage of affordable homes in high-demand areas. Additionally, these funds will be used for retail affordable home loans,” Ratra stated.
The loan is structured for a five-year term with an inclusive annual cost of 8.58%. It features a 1.5-year moratorium on principal repayments, followed by six equal principal payments over the next 3.5 years.
AIIB noted that this funding will promote green building practices in alignment with India’s climate objectives.
“This investment underscores AIIB’s commitment to sustainable and inclusive infrastructure,” said Gregory Liu, Director General of AIIB’s Financial Institutions and Funds Clients Department. “By collaborating with IIFL Home Finance, AIIB is supporting India’s green building initiatives while addressing the housing gap for low-income families,” Liu added in a statement on the company’s website.
Established in 2016, AIIB now has 110 full and approved members and boasts a capital of $100 billion. The bank partners with other organizations to mobilize investments in infrastructure and other sectors that promote sustainable economic growth and regional connectivity.
This is the second external commercial borrowing (ECB) IIFL Home Finance has raised this financial year. The mortgage lender handles approximately ₹40,000 crore in assets under management, with affordable housing loans making up about two-thirds of that total.
IIFL Home Finance is 79.59% owned by IIFL Finance, while the remaining 20.41% is held by ADIA.
With 376 branches across 18 states, IIFL Home Finance targets underserved and emerging markets, including suburbs of Tier 1 cities and small towns ranging from Tier 2 to Tier 4.
