HomeFirst Raises INR 280 Crores from International Finance Corporation (“IFC”)

HomeFirst raises INR 280 Crs from IFC, a member of World Bank Group.

HomeFirst raises its maiden green housing focused long term debt.

HomeFirst has further diversified its borrowing sources with the latest fund raise from IFC, through the issuance of INR denominated, senior secured, rated, unlisted, redeemable Non-Convertible Debentures with a tenor of up to seven years. The proceeds will be utilized to provide financing for retail buyers of affordable housing and green affordable housing units, encouraging home ownership for low-income segments, and supporting the development of green affordable housing.

Under the arrangement, IFC will also provide non-financial support in terms of knowledge, innovation and capacity building through the advisory engagement and non-commercial risk mitigation through IFC Advisory services. IFC will support HomeFirst in developing its green housing framework, including technical support for green housing evaluation parameters, operationalizing certification process and capacity building on green housing certification, monitoring and reporting. IFC estimates a US$3.1 trillion climate-related investment opportunity for India between 2018 to 2030, with green buildings accounting for a major portion of this opportunity at US $1.4 trillion.

Commenting on the agreement, Mr. Manoj Viswanathan, MD & CEO said “We are pleased to partner with IFC, a reputed multi-lateral agency and a member of the prestigious World Bank Group to further our mission ‘to be the fastest provider of home finance for the aspiring middle class, delivered with ease and transparency.’ This is a huge vote of confidence for HomeFirst’s business model and its strong risk-management process. We believe this partnership has a strong potential to enhance financial inclusion and Green Housing in India.”

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.

About Home First Finance Company India Limited

Home First Finance Company India Limited (HomeFirst) is a technology driven affordable housing finance company that targets first time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes. The Company has deep penetration in the largest housing finance markets with a network of 101 branches and distribution across 13 States / UT in India, with a significant presence in urbanized regions in the states of Gujarat, Maharashtra, Andhra Pradesh, Telangana,
Karnataka and Tamil Nadu. The company has diversified lead generation channels with a wide network of connectors. 

HomeFirst Partners with Union Bank of India for Co-lending

HomeFirst enters into a strategic co-lending partnership with Union Bank of India. Partnership will leverage strong lending technology infrastructure of HomeFirst and large deposit franchise of Union Bank with strong existing risk-management practices.

Union Bank of India (UBI) & Home First Finance Company India Ltd (HomeFirst) enter into a strategic co-lending partnership to offer home loans to customers at competitive interest rates. The partnership aims at leveraging the strengths of both entities to provide a seamless experience to retail home loan customers in the priority sector.

This partnership will enable HomeFirst to expand its product offerings to customers in the geographies it operates, while continuing to leverage its technology led customer-first approach.

UBI (established in 1919) is one of the oldest and largest public sector banks in India with total deposits base of over Rs 9.14 Lakh Crores and advances book (AUM) of Rs 6.35 Lakh Crores as on Sept’21.

Under this partnership, HomeFirst will originate loans as per the agreed credit policy of UBI in line with the provisions of RBI’s Co-Lending Model. HomeFirst will retain minimum 20% of the loan on its book while 80% will be on UBI’s book. HomeFirst will act as a servicing agent for the loan accounts sourced under this partnership throughout the life cycle of the loan.

The partnership is an outcome of the co-lending framework laid down by Reserve Bank of India (RBI) which provides a collaboration model to benefit from the low-cost funding model of a bank and the cost-efficient sourcing and servicing capabilities of a non-bank.

Commenting on the agreement, Mr. Manoj Viswanathan, MD & CEO said

We are pleased to partner with Union Bank of India. We can now leverage Union Bank of India’s deposit-led franchise and complement that with our strong technology-led distribution to provide efficient home loan solutions to a wider gamut of customers. This partnership is one more step in our mission ‘to be the fastest provider of home finance for the aspiring middle class, with ease and transparency.

Home First Finance Company Limited IPO of Equity Shares opening on Thursday, January 21, 2021

Price Band of Rs. 517– Rs. 518 per equity share of face value of Rs. 2 each (“Equity Share”)

Bid/Offer Opening Date – Thursday, January 21, 2021 and Bid/Offer Closing Date – Monday, January 25, 2021

Minimum Bid Lot is 28 Equity Shares and in multiples of 28 Equity Shares thereafter

The Floor Price is 258.50 times the Face Value of the Equity Shares and the Cap Price is 259 times the Face Value of the Equity Shares.

Home First Finance Company India Limited (the “Company”), will open the Bid/Offer period in relation to its initial public offering of Equity Shares (the “Offer”/ “IPO”) on Thursday, January 21, 2021 and close on Monday, January 25, 2021. The price band for the Offer has been decided at [Rs. 517– Rs. 518 per Equity Share. The Company and the Promoter Selling Shareholders may, in consultation with the book running lead managers (the “BRLMs”), consider participation by Anchor Investors which shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Wednesday, January 20, 2021.

The Offer aggregating up to Rs. 11,537.19 million comprises of a fresh issue of up to Rs. 2,650 million and an offer for sale aggregating up to Rs. 8,887.19 million by the Selling Shareholders, being True North Fund V LLP (“True North”) and Aether (Mauritius) Limited (“Aether”) (collectively, “Promoters”), Bessemer India Capital Holdings II Ltd, an existing investor and certain individual shareholders of the Company.

The fresh issue portion of the Offer aggregates up to Rs. 2,650 million, excluding the pre-IPO placement of approximately Rs 750 million and Rs 40.84 million to Orange Clove Investments B.V (an affiliate of Warburg Pincus) and certain employees of the Company, respectively by way of preferential allotments. The Offer for Sale aggregates up to Rs 8,887.19 million; the breakup of which is as the follows: up to Rs. 4,356.15 million by True North, up to Rs. 2,912.83 million by Aether, up to Rs. 1204.61 million by Bessemer India Capital Holdings II Ltd. and up to Rs. 413.60 million by the two individual shareholders.

Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited are the BRLMs to the Offer.

The Offer is being made through the Book Building Process and in compliance with Regulation 6(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”), wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”). Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.