International Finance Corporation (IFC), the private equity arm of the World Bank, has invested $18.3 million (Rs 80 crore) in Indian Mortgage Guarantee Company (IMGC). The total corpus of the company would be around $250 million (Rs 1,000 crore), with other investors being National Housing Bank of India, United Guaranty Corporation (United Guarantee) of the US, and the Asian Development Bank (ADB), according to this report.
IMGC is India's first mortgage guarantee fund. While NHB will hold 43% stake, UGC will hold 41%. IFC and ADB will hold 8% stake each. The report adds that the IMGC is likely to provide mortgage guarantee insurance for first and second mortgages to protect the lenders against potential mortgage credit losses.
IFC had recently invested $14 million (Rs 55 crore) in Delhi-based healthcare firm Rockland Hospital. It has also invested $20 million in Rabobank's food and agriculture fund. IFC has also recently exited its investment in Dabur Pharma with 41% return.
