Asian Development Bank (ADB) signs USD 108 million debt financing with Aavas Financiers

Key facts

• The Asian Development Bank (ADB) has signed a senior secured debt financing package of up to USD 108 million (approximately ₹983 crore) with Non-Banking Financial Company (NBFC) Aavas Financiers.
• The package includes USD 8 million in concessional debt financing through the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA).
• The financing aims to expand access to affordable housing loans for lower-income households and business loans for Micro, Small, and Medium-sized Enterprises (MSMEs) in underserved Indian states.
• Under the agreement, at least 70 per cent of the ADB debt financing is earmarked for housing loans for lower-income borrowers.
• A minimum of 50 per cent of the housing loans will be allocated to women property owners as sole or joint owners.
• The remaining 30 per cent of the total financing will be onlent to MSMEs to support entrepreneurship and job creation.
• The transaction includes up to USD 1,50,000 in technical assistance to build institutional capacity and boost market awareness of green housing solutions.
• CANPA is a trust fund managed by ADB, established in 2024 with a commitment of 360 million Canadian dollars from the Canadian government.