PNB Housing Finance Ltd. has partnered with World Bank Group unit International Finance Corp. to raise US$800 million to fund green and affordable housing in India, Mint reported Feb. 17, citing "a person with knowledge of the matter."

IFC plans to make US$400 million available for the new facility, of which it will provide US$150 million of its own money while the rest will be funded from other sources. PNB Housing will put up the other US$400 million with the money raised through rupee-denominated bonds issued through the offshore markets.

IFC is reportedly in negotiations with two other housing finance companies to invest another US$150 million, the source said. The investments are meant to assist the Indian government's housing scheme, Pradhan Mantri Awas Yojana, under which the government offers an interest subsidy of 6.5% on home loans to those in need.

PNB Housing did not respond to the publication's email for comment.