The International Finance Corporation (IFC), a part of the World Bank Group, has committed $150 million to the H-DREAM Fund managed by HDFC Capital Advisors. The fund aims to develop 25,000 green-certified affordable and mid-income homes in India, mobilizing up to $850 million in total.
Overview
IFC invests $150 million in H-DREAM Fund by HDFC Capital to develop 25,000 green-certified affordable and mid-income homes in India, mobilizing $850 million more.
Fund Size and Investment Goals
- Primary raise: $500 million
- Greenshoe option: Additional $500 million
The IFC’s investment is expected to mobilize up to $850 million in long-term capital from institutional investors for the sector.
Addressing India’s Housing Gap
India faces an affordable housing shortage of approximately 18 million units in Tier-I and Tier-II cities. The H-DREAM Fund aims to bridge this gap by directing funds towards sustainable housing projects.
IFC’s Role in India’s Real Estate Sector
IFC has been instrumental in financing real estate projects in India, collaborating with major developers to support affordable and sustainable housing initiatives.
Commitments and Early Interest
- In-principle commitments: Around $350 million from global and domestic institutions and Indian family offices.
The platform will attract both domestic and foreign capital to address India’s housing needs.
Impact Beyond Housing
- Create employment opportunities in construction and allied sectors.
- Encourage green finance models among developers.
- Enhance urban living standards with sustainable housing.
- Set benchmarks for future urban projects.
Key Takeaways for Competitive Exams
- IFC invests $150 million in H-DREAM Fund for affordable housing in India.
- H-DREAM Fund aims to develop 25,000 green-certified homes, mobilizing $850 million.
- India faces a housing shortage of 18 million units; the fund targets sustainable housing projects.
- IFC partners with HDFC Capital to boost affordable and mid-income housing in India.
- The fund attracts early commitments of $350 million from various institutions and family offices.
