Latest news with #VipulRoongta
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.'
