Motilal Oswal Home Finance Limited (MOHFL), a subsidiary of MOFSL, announced a $100 Million debt financing deal with the Asian Development Bank (ADB) via Non-Convertible Debentures (NCDs). The funds are earmarked to boost affordable housing loans for women borrowers, with 10% dedicated to financing residential units meeting recognized green building certification standards, signaling a commitment to sustainable construction practices across India.
Strategic Financing for Inclusive Growth
Motilal Oswal Home Finance Limited (“MOHFL”) has successfully entered into an agreement to raise USD 100 Million, equivalent in INR, from the Asian Development Bank (“ADB”). This capital will be raised through the issuance of Non-Convertible Debentures (“NCDs”), marking a significant milestone that reflects strong confidence in MOHFL’s business model and governance framework.
Utilization of Proceeds
The financing has dual objectives centered on social and environmental impact:
- Affordable Housing for Women: The proceeds will primarily be used to finance affordable housing loans extended to women borrowers. It was noted that women currently account for only 13% of homeowners.
- Green Construction: A dedicated 10% of the financing will support the construction of residential units that adhere to recognized green building certification standards, accelerating the adoption of environmentally sustainable practices.
Management and ADB Commentary
Mr. Sukesh Bhowal, MD & CEO of MOHFL, stated that this partnership will help deepen the penetration of affordable housing finance in underserved and upcoming towns, supporting low and middle-income families. Mr. Bhavin Shah, CFO, added that the long-tenor capital at competitive terms enhances the strength and diversity of the funding base and improves asset-liability matching.
Isabel Chatterton, Director General at ADB, emphasized that this partnership strengthens inclusive access to credit while accelerating sustainable housing solutions.
MOHFL’s Operational Snapshot (as of late 2025)
MOHFL, the housing finance arm of Motilal Oswal Financial Services Limited (“MOFSL”), focuses on serving first-time homebuyers in Tier 2, Tier 3, and emerging urban markets. Key operational highlights reported include:
- Branch Network: Operated 126 branches across 12 States as of December 2025.
- Assets Under Management (AUM): Stood at ₹5,379 crore as of December 2025.
- Disbursements (9M FY26): Recorded disbursements of ₹1,303 crore.
- Asset Quality: Maintained a stable Gross NPA of 1.43% as of December 2025.
- Profitability: Reported Profit After Tax of ₹130 crore for the previous financial year 2025, with a Return on Asset of 2.8%.
- Credit Rating: Rated AA+ / Stable as of October 2025 by ICRA Rating, reflecting confidence in its fundamentals.
The company remains focused on disciplined growth, expanding its geographic footprint, and strengthening its role in supporting affordable, inclusive, and environmentally sustainable home ownership across India.
Source: BSE
