International Finance Corporation (IFC) is planning to invest around $40 million in Aavas Financiers Limited (AFL), formerly known as Au Housing Finance Limited
IFC proposes to invest upto $40 million in AFL through Non-Convertible Debentures (NCD), said the World Bank’s investment arm.
The proceeds of proposed IFC’s financing will be utilised by AFL for supporting affordable housing finance for purchase / construction & extension of house to individual under low and medium income group in Rajasthan and nearby 5 states.
AFL’s customers include dairy farmers, carpenters, garment traders, artisans, etc. Currently, almost 65 per cent of AFL’s customers are self-employed.
Established in 2011, AFL was incorporated as a wholly owned subsidiary of Au Financiers Ltd. (Au), currently known as Au Small Finance Bank Limited.
As part of its Small Finance Bank transformation process, Au sold its substantial stake in AFL. The company’s current shareholders include Kedaara Capital, Partners Group, Au, and the management team.
The company is led by Sushil Agarwal, CEO, who is a senior banker with over 15 years of experience in housing and SME finance
AFL is headquartered in Jaipur, Rajasthan (a low-income state) and it operates its business in 6 states of India through branch network of 94 branches and touches more than 160 locations.