IFC, HDFC to create $800 million affordable housing fund

The International Finance Corporation has partnered with the Housing Development Finance Corporation (HDFC) to create an $800 million fund to finance the construction of affordable houses. To create this fund, IFC will pump in $200 million by subscribing to masala bonds issued by HDFC, which are to be listed on the London Stock Exchange. HDFC will contribute the remaining $600 million from its own resources. The first such fund in the country, it will support the government’s vision of Housing for All by 2022. Property developers can borrow from this fund if they build homes that qualify as affordable under the Pradhan Mantri Awas Yojana. The fund will be managed by HDFC.