International Finance Corporation (IFC), the private-sector lending arm of the World Bank, will provide up to $75 million to PNB Housing Finance Ltd via non-convertible debentures.
The secured fixed or floating rate debentures will have a tenor of five years, IFC said in a statement.
PNB Housing will use the money to finance construction of green residential apartments and buildings. These buildings will be certified by IFC’s EDGE Building certification programme that focuses on scaling up green buildings and has been launched in 100 developing countries.
IFC said the investment will encourage other investors to invest in other similar issuances by PNB Housing and other like-minded mortgage lenders. It added that the investment will reduce emission of greenhouse gases and help establish a market for green housing construction in India.
In the last three years, IFC has invested around $1 billion either directly or via intermediaries in green buildings, the firm said.
New Delhi-based PNB Housing was set up in 1988 by state-run lender Punjab National Bank, its majority shareholder. Earlier this year, private equity firm Carlyle signed a deal to buy the 49 per cent stake held in PNB Housing by New Silk Route-controlled financial services firm Destimoney Enterprises Ltd. Destimoney invested in PNB Housing in 2009.
