Page 16 - Banking Finance June 2017

HOUSING

HOUSING

NEWS
NEWS
NEWS
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NEWS

JM Financial plans to International Finance Corp. to invest in Aavas Finan-

start budget housing fi- ciers
International Finance Corp. (IFC) mentioned about its plans to invest around $40
nance unit
million (approximately Rs. 257 crores) in housing finance
company Aavas Financiers Ltd. IFC, the private sector lend-
ing arm of the World Bank, wishes to subscribe to the
company's non-convertible debentures (NCDs).
Aavas is a subsidiary of Jaipur-based non-banking finance
company (NBFC) AU Small Finance Bank Ltd, which is backed by private equity firm
Warburg Pincus. Aavas Financiers and AU Small Finance Bank were previously known
as Au Housing Finance Ltd and Au Financiers (India) Pvt Ltd respectively.
It aims to support affordable housing finance for purchase, construction and
JM Financial Ltd plans to set up an extension of house to individuals in low and medium income group in Rajasthan
affordable mortgage lender and a and neighbouring states. The clientele includes dairy farmers, carpenters, gar-
property brokerage in addition to its ment traders and artisans, IFC said, adding that currently almost 65% of the
real estate lending business. customers are self-employed.
The company has applied a licence AU Small Finance Bank is spread across 11 cities via 300 branches and proposes
for JM Financial Home Loans Ltd to increase it to 400 by March 2018. Recently, IFC mentioned that it is investing
from the National Housing Bank up to $50 million in Capital First Ltd via five-year secured NCDs. Capital First
(NHB). "The HFC (housing finance focuses on MSME (micro, small and medium enterprises) and consumer financ-
company) business will focus on pro- ing. Loans are offered for buying homes, two wheelers and consumer durables,
viding finance for housing of low and as well as loans against property, to entry and mid-level salaried employees of
mid-income range customers. corporate entities and to self-employed individuals.
The average ticket size could be Ummeed Housing Finance raises $5.6M
Rs10-15 lakhs. We already have real
Delhi-based affordable housing finance company, Ummeed Housing Finance raised
estate lending business for other $5.6 million in Series B funding from existing investors Lok
categories. Affordable housing fi- Capital Growth Fund (Lok's third fund) and Duane Park. The
nance is a space that has a huge po- Company has plans of using the freshly acquired funds for ex-
tential. So, the HFC will specialize in pansion at new locations of North and Central India, making
retail affordable housing finance," investments in SMAC (Social, Mobile, Analytics and Cloud)
Kampani said.
technologies, and growing Assets Under Management by six times in next year.

16 | 2017 | JUNE | BANKING FINANCE

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