ADIA to buy 20% Stake in IIFL Home Finance

Abu Dhabi Investment Authority (ADIA) through its subsidiary has agreed to buy a 20% stake in IIFL Home Finance for INR 22bn ($280mn). The deal is valued at INR 110bn ($1.4bn) Non-Banking Financial Company IIFL Finance, is the parent company. In an exchange filing, IIFL stated that the deal would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor. The capital infused through the deal will primarily be used for a granular expansion strategy into new markets to address the significant and growing demand for housing loans. As of March 2022, IIFL Home Finance had an AUM of INR 236.17bn ($3bn) with an active customer base of 168k across 16 states and 2 union territories. The company operates across small-ticket housing loans, construction finance, and loans against property. It also actively supports green affordable buildings in the country in collaboration with housing developers.

IIFL Finance’s dollar bonds were trading stable with its 5.875% 2023s at 98.41, yielding 7.82%.

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