HomeFirst Finance is expanding its green home portfolio to 10,000 units to unlock green bond funding, while meeting today to consider a ₹150 crore NCD issuance. The lender aims to attract sustainable capital, though investors are also monitoring leadership changes with the CFO set to depart later this month.
HomeFirst Finance is scaling its environmental, social, and governance (ESG) initiative by targeting 10,000 green-certified individual homes. This move is designed to prepare the company for issuing green bonds, which would allow it to tap into funds from sustainable investors like foreign pension funds. Currently, the company has successfully certified over 600 homes through a program developed with the International Finance Corporation (IFC).
The company’s board of directors is scheduled to meet on August 21, 2026, to consider raising up to ₹150 crore through the issuance of non-convertible debentures (NCDs). This capital raising comes as the lender maintains a strong operational pace, having reported 25.7% growth in assets under management during the first quarter of the 2027 financial year. The company continues to follow its guidance of maintaining 25% annual growth.
HomeFirst has maintained a strong ESG profile, which is important for attracting global capital. The company’s digital-first model, with over 90% of loan disbursements handled paperlessly, and its involvement in the government's Pradhan Mantri Awas Yojana (PMAY) scheme have helped it secure favorable ESG ratings from global agencies.
However, investors are tracking several monitorables alongside this growth strategy. The company faces leadership changes, with Chief Financial Officer Nutan Patwari set to resign effective August 31, 2026. Management transitions often draw attention regarding future financial stability. Additionally, the affordable housing finance sector remains sensitive to yield and margin compression, as lenders navigate competitive pricing and regulatory costs. While the company aims to broaden its access to global investors through its green initiative, its long-term financial performance will depend on its ability to scale this asset base efficiently while managing operational leadership shifts. The success of future green bond issuances will largely rely on reaching the 10,000-home target and maintaining the necessary certification standards.