PNB Housing raises Rs500 crore from IFC to finance green residential projects

PNB Housing Finance Ltd, India's fifth largest Housing Finance Company (HFC), has raised Rs500 crore by issuing secured fixed rate non-convertible debentures (NCDs) to International Finance Corporation (IFC).

The company will use the proceeds to fund its green residential projects, which are certified by recognised green building certification standards, including EDGE (certification programme developed by IFC).

''We are delighted to become the first housing finance company to successfully issue Green Bonds. 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,'' said Sanjaya Gupta, Managing Director at PNB Housing Financial.

''Environment conservation is a priority area and the end users are also realising the need for creating healthier neighborhoods. This is a landmark transaction in the realm of green infrastructure financing in India and will foster a change in housing sector's approach towards climate change, environment protection and healthier living,'' he added.

PNB Housing has pre-approved more than 62 green projects across Delhi-NCR, Mumbai, Pune and Bengaluru to name a few. The retail exposure towards green buildings is already around Rs 250 crore.

''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 at PNB Housing Finance.