49911 - PFL Loan 2025

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Summary of Investment Information

Project Number

49911

Company Name

PIRAMAL FINANCE LIMITED

Date SPI Disclosed

Feb 4, 2026

Country

India

Region

South Asia

Projected Board Date

Nov 10, 2025

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Feb 6, 2026

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Nov 19, 2025
Signed : Dec 19, 2025
Invested : Jan 13, 2026

Sector

Other Non-Banking Financial Institution (NBFI)

Project Description

IFC proposes to invest upto US$200 million in Piramal Finance Limited (PFL or the Company), erstwhile known as Piramal Capital Housing Finance Limited (PCHFL). IFC’s investment will be structured as a senior, secured US$ loan under the External Commercial Borrowing (ECB) route. Additionally, IFC will help the Company mobilize up to US$150 million from other external commercial lenders.

IFC’s loan proceeds will be deployed towards the following segments: (i) affordable housing loans and (ii) loans to micro and small enterprises (MSEs). At least 60 percent of the IFC loan proceeds will be towards women affordable housing homeowners/co-owners or women-owned MSEs (WMSEs). At least 10 percent of the IFC loan proceeds will be deployed in the low-income state of Uttar Pradesh (UP) for affordable housing or MSE loans.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	200.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Syndications	Loans to Woman-Owned SMEs
Syndications	Housing Loans to Individuals
Straight Senior Loan	Loans to Woman-Owned SMEs
Straight Senior Loan	Housing Loans to Individuals

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

Increased Access to affordable housing finance, including for women borrowers: IFC anticipates that the Project will support increased access to affordable housing finance, especially for women borrowers. Rapid urbanization in India and the lack of affordable housing finance have led to several challenges such as congestion, pressure on basic amenities and significant shortage of housing in cities, especially in the affordable segment. Recent estimates suggest India’s urban housing demand (including existing shortages) by 2030 will be 31.2 million units of which approximately 68 percent will be for affordable housing units. The estimated market size for women’s housing loans in India is US$32.3 billion, largely comprising of demand for apartments (84 percent) as per IFC’s Her Home Housing Finance for Women 2019 Report. Access of women borrowers to housing finance is further constrained lack of property ownership by women, insufficient income of women and traditional gender. Increased access to finance for MSEs, including for WMSEs: IFC anticipates that the proposed investment will help increase access to finance for micro, small and medium enterprises (MSMEs) in India, including for women-owned MSMEs (WMSMEs). MSMEs are critical for India’s growth and contribute significantly to GDP, exports and employment. However, of the estimated 63 million MSMEs in the country, only about 25 million have availed credit from formal sources, signifying the significant gap that exists for MSME finance in the country. While credit to MSMEs is back to pre-COVID-19 levels, supported by various enabling schemes of the GoI and RBI, providing continuity in access to finance will be key to ensuring sustainable growth. Increased access to finance in the LIS of UP: IFC anticipates that the Project will help increase access to finance for MSE and affordable housing borrowers in the state of UP. In terms of MSMEs, the state of UP contributes 14 percent of the MSMEs (in count) in India.

IFC's additionality in this Project is both Financial and Non-Financial. Financial Additionality is provided via the Financing Structure by provide a long tenor (5 year) US$ loan of up to US$200 million to PFL. This funding is crucial for NBFCs like PFL, as long-term financing is scarce even for well-rated companies. Moreover, diversifying funding sources has become even more important due to regulatory oversight by the Reserve Bank of India (RBI) on upper-layer NBFCs like PFL. Along with IFC’s own-account investment, IFC will mobilize up to US$150 million from other external commercial lenders. Non-Financial Additionality is provided in the form of Non-commercial risk mitigation by providing a strong vote of confidence and sending positive signals to potential international lenders. This will enable PFL to diversify its funding base to include more ECBs. Additionally, IFC’s 5-year loan will help establish a benchmark for long-term funding for PFL from external commercial lenders.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Board Composition Total (#)	number	Not Available	Not Available	Not Available
Board Composition Women (#)	number	Not Available	Not Available	Not Available
Female Direct Employment (#) Operations And Maintenance	individuals	Not Available	Not Available	Not Available
Number of Senior Management Positions	individuals	Not Available	Not Available	Not Available
Number of Women In Senior Management	individuals	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project entails a senior loan of up to $200 million to Piramal Finance Limited (PFL) which was formerly known as Piramal Capital & Housing Finance Limited for on lending to (i) affordable housing finance, and (ii) micro, small and medium enterprises (MSME) segment. PFL is the wholly owned subsidiary of Piramal Enterprises Limited (PEL)
PFL’s portfolio mainly comprises of retail loans (housing loans, loan against property, and unsecured loans) and wholesale loans (real estate and mid-market corporate loans). The MSME segment, which is part of the retail loans comprises businesses engaged in wholesale/retail trading, small scale manufacturing, and small and medium sized construction companies engaged in small scale commercial and residential projects.
These industry sectors in the MSME segment present medium-low Environmental & Social (E&S) risks and impacts. The typical E&S risks areas include labor and working conditions, gender-based violence and harassment, supply chain risk related to labor, air emissions, wastewater, waste management, and handling of hazardous materials, in the MSME borrower’s operations. The project will not support coal-related activities, or higher risk business activities that may involve a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, d) risk of retrenchment or e) significant Occupational Health and Safety risks. Hence, the project is categorized as Category FI-2 in accordance with IFC’s Environmental and Social Sustainability Policy. IFC’s applicable performance requirements for this project will be i) the Exclusion List, and ii) the host country’s laws and regulations.

The key risks are related to (i) the ability of PFL to identify and manage environmental and social risks associated with its lending activities, and (ii) the capacity and systems in place to manage these risks. PEL has an Environment Social and Governance (ESG) Policy. The Sustainability & Risk Management Committee serves as the apex body entrusted with the implementation and governance of the Company’s ESG policy. However, the ESG policy is not aligned to IFC Performance Standard (PS) 1 requirements. It has appointed an E&S officer (Head of Sustainability) who is responsible for the implementation of ESG Policy and is part of the Investor Relations and Strategy team. There is an E&S team supporting the E&S officer. As a part of this project, PFL will be required to develop E&S procedures to include assessment tools and guidelines against national E&S laws and regulations for the MSME asset class. The procedure will also include tools for screening out high-risk business activities as well as those listed under the IFC exclusion List. PFL's HR policies are aligned with PS 2 on labor and working conditions and it follows the applicable Life and Fire Safety requirements and applicable labor laws in its own operations.

S.no	Title	Anticipated Completion Date
1	Upgrade the ESG Policy in line with IFC PS 1 requirements.	01/13/2026

Contacts

For Inquiries About the Project, Contact

Piramal Finance Limited
Sanjay Jain
President & Head – Group Borrowing & Fund Raising
+91 022 6918 1200
Sanjay.kjain@piramal.com
1st Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, Opp. Fire Station, LBS Marg, Kurla (W), Mumbai - 400070
https://www.piramalfinance.com

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

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