Latest news with #H-DREAMFund
Time of India
3 days ago
- Business
- Time of India
IFC commits $150 million HDFC Capital's H-DREAM fund to promote green affordable housing
NEW DELHI: International Finance Corporation ( IFC ) has committed up to $150 million as an anchor equity investor in the H-DREAM Fund , a $1 billion private credit fund focused on the development of sustainable, affordable, and mid-income housing across urban India. The H-DREAM Fund is managed by HDFC Capital Advisors, the private equity arm of HDFC Group and a subsidiary of HDFC Bank. With a base size of $500 million and an additional $500 million green shoe option, H-DREAM seeks to raise long-term capital from global and domestic institutional investors. The fund will provide financing for projects implementing the Excellence in Design for Greater Efficiencies (EDGE) green building framework in line with global sustainability standards. The initiative aims to support the construction of at least 25,000 green-certified housing units for affordable and mid-income segments in India's urban centres. "By empowering developers to issue green finance instruments and scale sustainable projects, our partnership with HDFC Capital aims to create jobs, build resilience, improve livability in cities and set a benchmark for the future of urban transformation," said Imad N Fakhoury, regional director for South Asia, IFC. India currently faces an urban housing shortage estimated at 18 million units in tier-I and tier-II cities, with approximately 275 million people lacking adequate and affordable housing. The IFC expects its investment to help mobilise up to $850 million from institutional investors and other sponsors. HDFC Capital has reported that it has already received in-principle commitments of about $350 million from various global and domestic institutions and family offices. "This platform will channelize global and domestic capital to address the most basic social need of housing in India and we are witnessing interest from global and domestic institutions and Indian family offices with in-principle commitments of ~$350 million in place already,' said Vipul Roongta, MD & CEO, HDFC Capital. A recent IFC report projects a $1.4 trillion investment opportunity in India's green buildings market by 2030, with almost $1.25 trillion coming from the residential sector. H-DREAM Fund's investment strategy includes early-stage financing to tackle supply-side constraints in the development of quality affordable and mid-income housing. The fund will operate under IFC's Environmental & Social Performance Standards and the EDGE Green Building Framework.
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Business Standard
4 days ago
- Business
- Business Standard
IFC commits $150 mn to HDFC's H-DREAM fund for green, affordable housing
The International Finance Corporation (IFC) of the World Bank group on Thursday announced a commitment of up to $150 million as an anchor equity investment in the H-DREAM Fund (HDFC Capital Development of Real Estate Affordable and Mid-Income Fund). The move aims to advance green affordable housing and expand sustainable financing for property developers in India. HDFC Capital will manage the fund, which targets a corpus of $1 billion, that is designed to finance projects prioritising affordable and mid-income housing while adopting the EDGE (Excellence in Design for Greater Efficiencies) green building framework, consistent with global sustainability standards, a statement from the IFC said. It added that IFC's investment is expected to mobilise up to $850 million in long-term capital from institutional investors, including sponsor commitments. "The Fund will enable the development of at least 25,000 green, affordable and middle-income housing units," the statement read. Housing shortage The report highlights that an estimat of 275 million people in India, representing 22 percent of the population, currently lack access to adequate and affordable housing. Urban housing shortages are approximately 18 million units in Tier 1 and Tier 2 cities. Moreover, according to a recent report by real estate analytic firm PropEquity, new housing supply in India's top 15 tier 2 cities fell by 35 per cent year-on-year (Y-o-Y) to 30,155 units in the January–March quarter (Q1) of 2025, compared to 45,901 units in the same period last year. Towards sustainable housing Globally, the buildings sector accounts for around 33 percent of electricity consumption, with residential buildings making up approximately 24 percent, the IFC stated, adding that greening this sector is considered critical to closing the housing gap sustainably. It stated that that India's green buildings market could attract investments worth $1.4 trillion by 2030, with the residential sector accounting for almost 90 per cent of this potential. What is green housing? According to the World Bank, green housing refers to residential buildings designed, constructed, and operated in ways that reduce their environmental impact, improve resource efficiency, and promote sustainable living. This includes using energy-efficient technologies, sustainable building materials, water conservation methods, and incorporating designs that lower greenhouse gas emissions and reduce waste throughout the building's lifecycle. 'HDFC Capital is focused on providing early-stage financing to address supply side bottlenecks for high quality affordable and mid-income housing in India. Our endeavour is to integrate financing, facilitate energy, water and material efficiency along with innovative technology-based solutions in housing development." said Vipul Roongta, Managing Director and CEO of HDFC Capital Meanwhile, Carsten Mueller, IFC's Regional Industry Director for Manufacturing, Agribusiness, and Services in Asia, noted: 'By leveraging market-based solutions and channeling institutional capital to underserved markets, this initiative will broaden access to housing finance, create opportunities for smaller developers, and strengthen and diversify the housing value chain.'
Time of India
4 days ago
- Business
- Time of India
IFC, HDFC Capital partner for green affordable housing finance in India with $1 billion fund
The International Finance Corporation (IFC) is anchoring a $1 billion real estate fund with HDFC Capital Advisors, aiming to boost green affordable housing in India. IFC's $150 million investment in the H-DREAM Fund will help mobilize $850 million from other investors. The fund will finance projects implementing green building standards, addressing the housing gap and promoting sustainable urban growth. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The International Finance Corporation IFC ) has entered into an agreement with HDFC Capital Advisors to anchor a $1 billion (about Rs 8,770 crore) real estate fund focused on green affordable housing in a member of the World Bank Group, will invest up to $150 million (about Rs 1,320 crore), in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund ( H-DREAM Fund ), which will be managed by HDFC Capital, the real estate private equity arm of the HDFC fund will finance projects that prioritise affordable and mid-income housing, while implementing the EDGE (Excellence in Design for Greater Efficiencies) green building framework, in line with global sustainability standards.'For India, housing remains a social imperative and has strong multiplier effects on the economy. The H-DREAM Fund integrates sustainability with financing, which will go a long way in addressing the housing gap and build resilient communities. IFC continues to play a pioneering role in facilitating a greener and more inclusive India,' said Deepak Parekh, non-executive chairman, HDFC commitment is expected to help mobilise up to $850 million, including sponsor commitment, of long-term capital from institutional investors. Additionally, the fund will enable the development of at least 25,000 green, affordable and middle-income housing units.'Green affordable housing delivers a dual impact as it meets the urgent need for inclusive housing while advancing sustainability in urban development. IFC's investment in H-DREAM Fund is designed to demonstrate the viability of innovative financing vehicles and mobilise long-term private capital for green housing solutions,' said Imad N Fakhoury, regional director for South Asia, to him, the IFC-HDFC Capital partnership aims to help developers scale up green projects, create jobs, boost urban resilience and set a benchmark for sustainable urban growth.'HDFC Capital is focused on providing early-stage financing to address supply-side bottlenecks for high quality affordable and mid-income housing in India,' said Vipul Roongta, managing director and CEO, HDFC Capital. 'Our endeavour is to integrate financing, facilitate energy, water and material efficiency along with innovative technology-based solutions in housing development. This platform will channelise global and domestic capital to address the most basic social need of housing in India.'The fund has witnessed interest from global and domestic institutions and Indian family offices, with in-principle commitments of $350 million already in place, according to is the largest sustainability-led affordable housing fund in India—and among the largest in the world. It also marks the biggest supply-side financing initiative in this segment.'By leveraging market-based solutions and channelling institutional capital to underserved markets, this initiative will broaden access to housing finance , create opportunities for smaller developers, and strengthen and diversify the housing value chain,' said Carsten Mueller, IFC's regional industry director for manufacturing, agribusiness and services in buildings sector accounts for about 33% of total electricity consumption globally, with the share of residential buildings at about 24%. Greening this sector is crucial to sustainably bridge the housing nascent, IFC estimates a potential investment opportunity of $1.4 trillion in India's green buildings market by 2030. Of this, $1.25 trillion or nearly 90% will come from the residential India, an estimated 275 million people, or 22% population, lack access to adequate and affordable housing. Urban housing shortfall stands at about 18 million housing units in tier-1 and tier-2 cities.
Economic Times
4 days ago
- Business
- Economic Times
IFC, HDFC Capital partner for green affordable housing finance in India with $1 billion fund
AI generated image used for representation The International Finance Corporation (IFC) has entered into an agreement with HDFC Capital Advisors to anchor a $1 billion (about Rs 8,770 crore) real estate fund focused on green affordable housing in India. IFC, a member of the World Bank Group, will invest up to $150 million (about Rs 1,320 crore), in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), which will be managed by HDFC Capital, the real estate private equity arm of the HDFC Group. The fund will finance projects that prioritise affordable and mid-income housing, while implementing the EDGE (Excellence in Design for Greater Efficiencies) green building framework, in line with global sustainability standards.'For India, housing remains a social imperative and has strong multiplier effects on the economy. The H-DREAM Fund integrates sustainability with financing, which will go a long way in addressing the housing gap and build resilient communities. IFC continues to play a pioneering role in facilitating a greener and more inclusive India,' said Deepak Parekh, non-executive chairman, HDFC commitment is expected to help mobilise up to $850 million, including sponsor commitment, of long-term capital from institutional investors. Additionally, the fund will enable the development of at least 25,000 green, affordable and middle-income housing units. 'Green affordable housing delivers a dual impact as it meets the urgent need for inclusive housing while advancing sustainability in urban development. IFC's investment in H-DREAM Fund is designed to demonstrate the viability of innovative financing vehicles and mobilise long-term private capital for green housing solutions,' said Imad N Fakhoury, regional director for South Asia, to him, the IFC-HDFC Capital partnership aims to help developers scale up green projects, create jobs, boost urban resilience and set a benchmark for sustainable urban growth.'HDFC Capital is focused on providing early-stage financing to address supply-side bottlenecks for high quality affordable and mid-income housing in India,' said Vipul Roongta, managing director and CEO, HDFC Capital. 'Our endeavour is to integrate financing, facilitate energy, water and material efficiency along with innovative technology-based solutions in housing development. This platform will channelise global and domestic capital to address the most basic social need of housing in India.'The fund has witnessed interest from global and domestic institutions and Indian family offices, with in-principle commitments of $350 million already in place, according to is the largest sustainability-led affordable housing fund in India—and among the largest in the world. It also marks the biggest supply-side financing initiative in this segment. 'By leveraging market-based solutions and channelling institutional capital to underserved markets, this initiative will broaden access to housing finance, create opportunities for smaller developers, and strengthen and diversify the housing value chain,' said Carsten Mueller, IFC's regional industry director for manufacturing, agribusiness and services in Asia. The buildings sector accounts for about 33% of total electricity consumption globally, with the share of residential buildings at about 24%. Greening this sector is crucial to sustainably bridge the housing nascent, IFC estimates a potential investment opportunity of $1.4 trillion in India's green buildings market by 2030. Of this, $1.25 trillion or nearly 90% will come from the residential India, an estimated 275 million people, or 22% population, lack access to adequate and affordable housing. Urban housing shortfall stands at about 18 million housing units in tier-1 and tier-2 cities.
News18
4 days ago
- Business
- News18
IFC commits USD 150 mn to affordable housing fund promoted by HDFC Capital
New Delhi, Aug 7 (PTI) IFC has committed up to USD 150 million (about Rs 1,300 crore) as an anchor equity investment in H-DREAM Fund (HDFC Capital Development of Real Estate Affordable and Mid-Income Fund), promoted by HDFC Capital, in a bid to promote green, affordable housing and expand access to sustainable financing for property developers. The real estate private equity arm of HDFC Group, HDFC Capital, will manage the fund, which has a target corpus of USD 1 billion (USD 500 million with a green shoe of USD 500 million), a joint statement said on Thursday. The fund will finance projects that prioritise affordable and mid-income housing, while implementing the EDGE (Excellence in Design for Greater Efficiencies) green building framework, in line with global sustainability standards, it said. H-DREAM is among the first private credit funds globally to champion the development of green, affordable and mid-income housing, it said. IFC's commitment is expected to help mobilise up to USD 850 million (including sponsor commitment) of long-term capital from institutional investors, it said, adding that the fund will enable the development of at least 25,000 green, affordable and middle-income housing units. 'Green affordable housing delivers a dual impact: it meets the urgent need for inclusive housing while advancing sustainability in urban development. IFC's investment in H-DREAM Fund is designed to demonstrate the viability of innovative financing vehicles and mobilise long-term private capital for green housing solutions," IFC Regional Director for South Asia Imad N Fakhoury said. By empowering developers to issue green finance instruments and scale sustainable projects, the partnership with HDFC Capital aims to create jobs, build resilience, improve livability in cities and set a benchmark for the future of urban transformation, he said. On the development, HDFC Capital chairman Deepak Parekh said that housing remains a social imperative and has strong multiplier effects on the economy. The H-DREAM Fund integrates sustainability with financing, which will go a long way in addressing the housing gap and build resilient communities. IFC continues to play a pioneering role in facilitating a greener and more inclusive India, Parekh added. The buildings sector accounts for about 33 per cent of total electricity consumption globally, with residential buildings accounting for about 24 per cent. Greening this sector is crucial to sustainably bridge the housing gap, it said. This platform will channelise global and domestic capital to address the most basic social need of housing in India. We are witnessing interest from global and domestic institutions and Indian family offices with in-principle commitments of about USD 350 million in place already, HDFC Capital MD & CEO Vipul Roongta said. PTI DP DP SHW view comments First Published: August 07, 2025, 17:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
