MICROCAPITAL BRIEF: International Finance Corporation (IFC), Government of Canada to Loan $85m to Dewan Housing Finance of India for “Green” Mortgages

The International Finance Corporation (IFC), a member of the US-based World Bank, and the government of Canada have partnered to loan USD 85 million to Dewan Housing Finance Corporation of India, a for-profit housing finance company, to finance “green” mortgages under the joint IFC-Canada Climate Change Program. The loan is expected to expand affordable and efficient housing in India, reducing 6,200 tons of carbon emissions per year. IFC will fund USD 15 million of the loan and raise the remaining USD 70 million through commercial borrowing. Details regarding Canada’s participation in the transaction have not been released.

According to India’s Twelfth Five Year Plan for the years 2012 through 2017, the housing shortage in the country is roughly 58.8 million units. Over 90 percent of this surplus demand is from low-income households.

As of December 2012, IFC reported 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent. As of 2013, Dewan reported total assets of USD 444 million, return on assets of 1.8 percent, and return on equity of 18.7 percent.

By Makai McClintock, Research Associate

About Dewan Housing Finance Corporation:
Founded in 1984, the Dewan Housing Finance Corporation is an Indian for-profit housing finance company that provides home loan products, insurance services and fixed deposit schemes to assist Indians with purchasing homes. As of 2013, the company has 240 branches and 8 regional processing offices in India. As of the same year, Dewan reported total assets of USD 444 million.

About the International Finance Corporation (IFC):
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of December 2012, IFC reported 184 member countries and total assets of USD 76 billion.

Sources and Additional Resources

International Finance Corporation Press Release, “IFC, Canada Lend $85 million to Dewan, Expand Affordable Housing Finance in India,” http://ifcext.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/A8685A60474CF3E585257C1B002670F1

MicroCapital, April 8, 2013, “International Finance Corporation (IFC) to Loan Up to $11m to Suryoday Micro Finance of India,”https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-up-to-11m-to-suryoday-micro-finance-of-india/

MicroCapital, March 27, 2013, “International Finance Corporation Invests $28m in Equity in Bhutan National Bank to Increase Financial Inclusion; Lending to Micro-, Small and Medium-sized Enterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-invests-28m-in-equity-in-bhutan-national-bank-to-increase-financial-inclusion-lending-to-micro-small-and-medium-sized-enterprises/

MicroCapital Universe Profile: Dewan Housing Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dewan+Housing+Finance+Corporation

MicroCapital Universe Profile: International Finance Corporation (IFC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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