Motilal Oswal Home Finance Limited (MOHFL) on Wednesday said it has signed a $100 million debt financing agreement with the Asian Development Bank (ADB) to expand its affordable housing portfolio, with a focus on women borrowers and green-certified homes.

The company will raise the funds in Indian rupee equivalent through non-convertible debentures (NCDs), MOHFL said in a release. “The financing represents an important milestone for MOHFL and reflects strong confidence from a leading global development finance institution in the Company’s business model, governance framework, and long-term growth prospects.”

According to the company, the proceeds will primarily be used to extend affordable housing loans to women borrowers across underserved and emerging towns in India. Additionally, 10% of the funds will be allocated towards financing residential units that meet recognised green building certification standards, supporting environmentally sustainable construction practices.

Sukesh Bhowal, Managing Director and CEO of Motilal Oswal Home Finance, said the funding would help the company deepen its presence in smaller towns and strengthen its responsible growth strategy.

“With the partnership of ADB, we will be able to expand affordable housing finance to low- and middle-income families and support green construction initiatives. Green housing will play an important role in building resilient communities,” he said.

Bhavin Shah, Chief Financial Officer of MOHFL, said the long-tenor funding would strengthen the company’s liability profile.

“Access to long-term capital at competitive terms enhances our funding mix, improves cost efficiency and supports better asset-liability management, which is critical in the housing finance business,” he added.

ADB said the financing would help expand access to affordable housing loans for women, who currently account for a relatively small share of homeowners in India, while also supporting the company’s entry into the green-certified housing segment.

“By lowering barriers to formal financial services, this partnership strengthens inclusive access to credit while promoting environmentally sustainable housing solutions,” said Isabel Chatterton, Director General, Private Sector Operations Department at ADB.

MOHFL, the housing finance arm of Motilal Oswal Financial Services, focuses on affordable housing loans for first-time homebuyers in low- and middle-income segments across Tier 2, Tier 3 and emerging urban markets.

As of December 2025, it operated 126 branches across 12 states and managed assets under management of ₹5,379 crore, serving over 53,000 customers. Gross NPAs stood at 1.43%, reflecting stable asset quality. The company reported a profit after tax of ₹130 crore in FY25 and a return on assets of 2.8%, and is rated AA+ (Stable) by ICRA.