Motilal Oswal Home Finance signs $100 million debt finance deal with ADB

Motilal Oswal Home Finance has said that it will borrow $100 million [~₹926 crore] from the Asian Development Bank (“ADB”) through Non-Convertible Debentures (NCD).

The proceeds from the ADB financing will in turn be used to provide affordable housing loans to women borrowers. About 10 per cent of the proceeds will also be deployed to finance the construction of residential units that meet green building certification standards.

Sukesh Bhowal, MD & CEO, Motilal Oswal Home Finance, said, “With the partnership of ADB, we will be able to deepen the penetration of affordable housing finance in under-served and upcoming towns across India, helping low and middle-income families realise their dream of home ownership. Importantly, this funding also supports the green construction finance initiative. We believe green housing will play a vital role in building resilient communities for the future.”

Bhavin Shah, CFO, Motilal Oswal Home Finance, added, “The financing from ADB significantly enhances the strength and diversity of our funding base. Access to long-tenor capital at competitive terms improves our overall cost of funds and supports better asset-liability matching, which is critical in the housing finance business.”

“ADB’s long-term financing will help MOHF broaden access to affordable housing loans for women—who currently account for just 13 per cent of homeowners—and support the company’s entry into the green‑certified housing segment,” said Isabel Chatterton, Director General, Private Sector Operations Department, Asian Development Bank.