Dec 29: Aavas Financiers Ltd (Aavas), one of Indiaâ€™s leading affordable housing finance companies, on Thursday said that it has received investment from CDC Group Plc (CDC), the United Kingdomâ€™s Development Finance Institution, to successfully raise Rs 200 crore by issuance of Rupee Denominated Masala Bonds. This is Aavasâ€™s maiden Masala Bond issue and can be listed on London Stock Exchange or any other international stock exchanges in future.
Aavas is a retail focused affordable housing finance company, primarily serving low and middle-income self-employed customers to fulfill their home financing requirements. These customers, who make up a large proportion of Indiaâ€™s population, have limited or no access to formal banking credit due to lack of credit score or proven credit history. For the Half Year ended 30th September 2018, Aavasâ€™ loan book stood at Rs 4,759 crores with Gross NPAs at 0.57%, capital adequacy ratio of 58.8% and a healthy ROA of 3.06%.
Commenting on the development, Sushil Kumar Agarwal, Whole Time Director & Chief Executive Officer, Aavas Financiers, said â€œIt gives me immense pleasure to share that the Company was able to successfully raise this long-term
source of funds, in this current challenging environment. CDCâ€™s investment in Aavasâ€™s Masala Bonds
will further support the extension of affordable housing loans to low and middle income customers in underserved rural and semi-urban areas of India. We would like to thank all our investors for their trust and belief in the Companyâ€™s robust business model and we will continue to maintain our growth
trajectory despite the industry currently facing headwinds.â€
According to Srini Nagarajan, CDCâ€™s Managing Director and Head of Asia, â€œCDCâ€™s commitment to Aavas will enable it to grow its affordable housing finance business that will help Indiaâ€™s low and middle income families to build their homes and improve overall economic prosperity in our markets. CDCâ€™s long-term investment commitment to Aavas especially in the current liquidity situation demonstrates our commitment as a Development Finance Institution with long-term patient capital. CDC has been investing in India for over 30 years and we look forward to a productive long-term relationship with Aavas.â€