India-based PNB Housing Finance has reached an agreement to raise $100m from the Japan International Cooperation Agency (JICA) and Citibank.

PNB intends to use the funding to provide loans in the affordable housing segment for low-income households.

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As per the agreement, JICA will provide long term finance of $75m, while Citibank will provide the remaining amount.

In a press release, JICA noted that nearly 275 million Indians, which account for 22% of the country’s total population, are unable to acquire quality housing.

Moreover, about 90% of low-income households face housing shortages.

The company added: “India is faced with rapid urbanisation: it is estimated that the urbanisation rate will be about 40% by 2030.

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“Hence, improving access to housing for low to medium-income households in urban areas is also important.”

PNB Housing has a network of 105 branches, 27 outreaches and 23 underwriting hubs across India.

As of 31 March 2020, PNB Housing has maintained liquidity of INR75.88bn ($1.12bn) and had sanctioned but undrawn funding lines of INR39.94bn ($591.31m).

PNB Housing Finance managing director Sanjaya Gupta said: “We express our gratitude to JICA and Citi for partnering with us in their journey towards improving the lives of low-income households and promoting sustainable economic growth in India.

“This would be JICA’s first debt funding in the housing finance sector in the country.”