Aavas Financiers raises Rs. 345 crore from IFC

On 16th September 2019, Aavas Financiers Limited ("Aavas") informed the exchanges that it has received an investment of Rs. 345 crore from IFC.

Aavas received an investment from IFC, a member of the World Bank Group, through issuance of Non-Convertible Debentures (NCDs). Aavas will use the proceeds to grow its affordable housing finance program in the rural and semi-urban areas of Rajasthan, a low income state, and neighboring areas.

Mr. Ghanshyam Rawat, Chief Financial Officer, Aavas Financiers, said: "IFC's investment in Aavas will be utilized for lending to low- and middle-income customers in underserved rural and semi-urban areas of India. This is in line with the government's vision of Housing for All by 2022 which will help us to grow our affordable housing finance loan book. IFC's investment is a much efficient source of borrowings, as it is a longer-tenure fund. IFC has a very long-term view of India and has made investments in the critical economic areas for the Country with a view to spur growth which is inclusive, sustainable and fast. It will further deepen our reach and augment our liquidity position in today's challenging environment".

Aavas provides affordable home loans to customers in the semi-urban and rural areas, targeting self-employed and salaried customers in the informal segment, who otherwise have limited access to formal lending channels. The company's product offering consists of home loans for purchase or construction or residential properties, and for the extension and repair of existing housing units.

On Tuesday, the stock of Aavas opened at Rs. 1565 per share and made an intraday high and low of Rs. 1569.35 and Rs. 1496, respectively on the BSE. At 10.49 am, the stock was trading at Rs. 1520, down by 0.41 per cent.