📋 Tender Overview
STATUS: Proposed
MEMBER: India
SECTOR: Urban
E&S CATEGORY: FI
PROJECT NUMBER: 000816
FINANCING: PROPOSED FUNDING AMOUNT
USD100 million
FINANCING TYPE: Nonsovereign
TIMELINE: CONCEPT REVIEW
November 28, 2023
APPRAISAL REVIEW/FINAL REVIEW:
March 5, 2025
OBJECTIVE
To support access to affordable housing for low-income households and promote green affordable housing in India.
DESCRIPTION
The project proposes to provide debt financing of up to USD100 million or its equivalent in INR to IIFL Home Finance (IIFLHF) for on-lending to support acquisition or construction of affordable housing in India.
Out of the total proceeds, a part will be allocated to financing the acquisition of affordable housing for households in the Economically Weaker Segment (EWS) and Low-Income Group (LIG). Additionally, a certain percentage will be directed towards loans for acquisition or construction of green affordable housing.
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization: AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Standards (ESS) and the Environmental and Social Exclusion List (ESEL) is applicable to this Project. The Project is expected to have minimal adverse environmental and social (ES) impacts as the loan proceeds will be used for (i) lending to individual borrowers for the construction and acquisition of residential property units or (ii) to private residential property developers for financing the construction of small-scale residential developments (one to few apartment blocks) in line with the housing construction regulations in India. Therefore, the Project is placed in Category FI and is expected to have limited adverse ES impacts which are reversible and can be successfully managed using known good practices.
Environment and Social Instruments: To manage ES impacts and in accordance with the applicable laws and regulations of the Government of India and AIIB’s ESP, IIFLHF has established an ESG Policy and Sustainable Finance Framework (SFF) in addition to a set of internal policies, including Health and Safety Policy, Diversity and Inclusion Policy, among others. IIFLHF has also established a Fair Practices Code (FPC) to ensure responsible lending conduct and disclosures. These policies are complemented with practical tools such as Kutumb.
Environmental and Social Aspects: The main environmental aspects related to provision of loans to homeowners for purchase of green and/or affordable homes are related to occupational health and safety of using home appliances and use of building services. For loans related to builders for housing development, environmental aspects are extended to health and safety at construction and operation of the buildings, waste management, and resource efficiency during construction and operation. Land shall be acquired following market principles and a willing seller, willing buyer model. The Project will exclude sub-projects that invol
