PNB Housing Finance on Thursday said it has raised Rs.500 crore from International Finance Corporation (IFC) to fund green residential projects.
According to the housing finance company (HFC), it raised the funds via issue of secured fixed rate non-convertible debentures (NCDs) to the IFC.
"We are delighted to become the first housing finance company to successfully issue green bonds," said Sanjaya Gupta, managing director, PNB Housing Financial in a statement.
"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."
The company elaborated, that it will use the funds to finance green residential projects.
"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)," the statement said.
The company has already pre-approved more than 62 green projects across Delhi-NCR, Mumbai, Pune and Bengaluru.
"The retail exposure towards green buildings is already around Rs.250 crore," the statement added.
Currently, PNB Housing Finance is India's fifth largest HFC.
