Motilal Oswal Home Finance Ltd (MOHFL) has signed a $100 million debt financing agreement with the Asian Development Bank (ADB), marking a significant step in expanding affordable housing finance and promoting green housing development across India.
The company will raise the rupee-equivalent amount through non-convertible debentures (NCDs). The transaction underscores strong confidence from a leading global development finance institution in MOHFL’s business model, governance standards, and long-term growth strategy.
Funding to Drive Women-Focused Affordable Housing
The proceeds from the ADB financing will primarily be deployed to provide affordable housing loans to women borrowers, supporting greater financial inclusion in India’s housing sector. Currently, women account for only around 13% of homeowners in the country, highlighting the need for targeted interventions to improve access to credit.
In addition, 10% of the funding will be allocated towards financing residential units that meet recognised green building certification standards. This initiative is aimed at encouraging environmentally sustainable construction practices and accelerating the adoption of green housing solutions in India.
Strengthening MOHFL’s Funding Base
MOHFL MD & CEO Sukesh Bhowal said the partnership with ADB will enable the company to deepen affordable housing penetration in underserved and emerging towns across India. He noted that the funding would help low- and middle-income families realise their homeownership aspirations while also advancing green construction finance initiatives.
CFO Bhavin Shah highlighted that the ADB financing enhances the strength and diversity of the company’s funding base. Access to long-tenor capital at competitive rates is expected to improve the overall cost of funds and support better asset-liability matching, a critical factor in the housing finance business.
ADB Backs Inclusive and Sustainable Housing
ADB director general of private sector operations department Isabel Chatterton said ADB’s long-term financing will help MOHFL broaden access to affordable housing loans for women and support its entry into the green-certified housing segment. By reducing barriers to formal financial services, the partnership aims to strengthen inclusive access to credit while accelerating environmentally sustainable housing development.