The International Finance Corporation announced on 7 August 2025 that it would commit up to USD 150 million as anchor investor in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund, known as H-DREAM. The fund, managed by HDFC Capital, the private equity arm associated with HDFC Bank, is targeting a total corpus of USD 1 billion and is structured specifically to finance green affordable and mid-income housing across urban India. The announcement was made in a joint press release published on the IFC's website.
The partners described H-DREAM as among the first private credit funds globally to champion the development of green, affordable and mid-income housing. At the time of launch, HDFC Capital said the fund had in-principle commitments of approximately USD 350 million from global and domestic institutions and Indian family offices.
GREEN BUILDING STANDARDS MANDATORY
All projects receiving financing from H-DREAM are required to meet the EDGE green building certification framework, a standard developed by the IFC itself to measure resource efficiency in construction across emerging markets. Meeting EDGE requirements means funded projects must demonstrate measurable reductions in energy use, water consumption, and embodied energy in building materials relative to a standard baseline construction.
The fund expects to develop at least 25,000 green affordable housing units.
FUND OBJECTIVES
The H-DREAM initiative is designed to address India's urban housing gap while advancing sustainability in urban development.