IFC's Strategic Move to Catalyse Affordable Housing through RMBS Investment

The International Finance Corporation (IFC) plans to invest up to Rs 300 crore in Residential Mortgage-Backed Securities (RMBS) issued by Grihum Housing Finance. This initiative aims to boost affordable housing in India, aligning with the government's Pradhan Mantri Awas Yojana, by enhancing access to housing finance.

The International Finance Corporation (IFC), a World Bank Group member, is set to invest Rs 300 crore in Residential Mortgage-Backed Securities (RMBS) from Grihum Housing Finance. This move intends to bolster home ownership for low- and middle-income families in India.

In its first RMBS investment in India, IFC aims to stimulate private capital involvement in the affordable mortgage sector. This approach is aligned with the Pradhan Mantri Awas Yojana initiative, which targets housing for all.

RMBS instruments convert loan cash flows into tradable securities, facilitating longer-term funding and broadening investor base. This strategic partnership seeks to advance the housing finance ecosystem, aiding families to achieve home ownership.

(With inputs from agencies.)