Bottom Line: Funding raised to finance green residential projects as PNB is first HFC in India to successfully issue Green Bonds.
PNB Housing Finance has issued secured fixed rate NCDs to International Finance Corporation (IFC) to raise Rs. 500 crore for funding Green Residential projects. With this, PNB Housing has become the first housing finance company (HFC) to successfully issue Green Bonds.
The funds will be used to finance green residential projects which are certified by recognized green building certification standards, including EDGE (certification programme developed by IFC).
Speaking on the occasion, Sanjaya Gupta, Managing Director, PNB Housing Financial said, “We are delighted to become the first housing finance company to successfully issue Green Bonds. This will further give a fillip to our intent to develop a committed green lending practice in the sector for a sustained growth of green loan portfolio. Environment conservation is a priority area and the end users are also realizing the need for creating healthier neighborhoods. This is a landmark transaction in the realm of green infrastructure financing in India and will foster a change in housing sector’s approach towards climate change, environment protection and healthier living”.
Jayesh Jain, Chief Financial Officer, PNB Housing Finance Limited, further added, “As this fund will be exclusively used to support investments in green energy efficient buildings, the same will help reduce greenhouse emissions and to curb pollution, thus, helping us to establish a market and an ecosystem for green housing construction in India.”
PNB Housing has pre-approved more than 62 green projects across Delhi-NCR, Mumbai, Pune and Bengaluru to name a few. The retail exposure towards green buildings is already around INR 250 crores.
