PNB Housing raises Rs 500 cr for green residential projects

New Delhi: PNB Housing Finance has raised Rs 500 crore by issuing bonds to World Bank arm IFC for funding its green residential projects.

"PNB Housing Finance has issued secured fixed rate NCDs to International Finance Corporation (IFC) to raise Rs 500 crore for funding green residential projects", the company said in a release today.

It has become the first housing finance company (HFC) to successfully issue green bonds, the company added.

The funds will be used to finance green residential projects which are certified by recognised green building certification standards, including EDGE -- certification programme developed by IFC.

"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," said Sanjaya Gupta, Managing Director, PNB Housing.

Environment conservation is a priority area and the end users are also realising the need for creating healthier neighbourhoods, he said.

"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", said Jayesh Jain, Chief Financial Officer of the company.

PNB Housing has pre-approved more than 62 green projects across Delhi-NCR, Mumbai, Pune and Bengaluru among others.

The retail exposure towards green buildings is already around Rs 250 crore, the company further said.