Motilal Oswal Financial Services has announced that its housing finance subsidiary, Motilal Oswal Home Finance Limited (MOHFL), has entered into a strategic $100 million debt financing agreement with the Asian Development Bank (ADB). The deal, structured through Non-Convertible Debentures (NCDs), specifically targets women-centric affordable housing and green construction initiatives.

Deal Structure and Purpose

The financing agreement represents a significant milestone for MOHFL, with proceeds earmarked for specific social and environmental objectives. The funding will primarily support affordable housing loans to women borrowers, addressing the critical gap in female homeownership in India.

Strategic Focus Areas

The agreement addresses two critical market segments. The majority of funds will finance affordable housing loans specifically for women borrowers, targeting a demographic that currently represents only 13% of homeowners in India. Additionally, 10% of the proceeds will be deployed towards financing residential units that meet recognized green building certification standards, supporting environmentally sustainable construction practices.

"Funding from ADB marks a significant milestone in our responsible growth journey. With the partnership of ADB, we will be able to deepen the penetration of affordable housing finance in underserved and upcoming towns across India, helping low and middle-income families realise their dream of homeownership," said Sukesh Bhowal, MD & CEO of MOHFL.

Financial Impact and Business Metrics

The ADB financing significantly enhances MOHFL's funding base diversity and cost structure. As of December 2025, the company operates 126 branches across 12 states with Assets Under Management of ₹5,379.00 crore. The company maintains strong operational metrics with disbursements of ₹1,303.00 crore during the nine months of FY26.

Bhavin Shah, CFO of MOHFL, highlighted the strategic value: "The financing from ADB significantly enhances the strength and diversity of our funding base. Access to long-tenor capital at competitive terms improves our overall cost of funds and supports better asset-liability matching."

Market Positioning and Growth Strategy

The partnership validates MOHFL's business model and positions the company for expanded operations in underserved markets. With a current credit rating of AA+/Stable from ICRA following an upgrade from AA/Positive, the company demonstrates strong fundamentals and risk management practices.

Isabel Chatterton, Director General of ADB's Private Sector Operations Department, emphasized the partnership's broader impact: "ADB's long-term financing will help MOHFL broaden access to affordable housing loans for women and support the Company's entry into the green-certified housing segment, strengthening inclusive access to credit while accelerating environmentally sustainable housing solutions."

Motilal Oswal Financial Services ' alternative investment arm, Motilal Oswal Alternates, has announced the first close of its maiden private credit fund, India Credit Excellence Fund, at ₹1,700 crore. The fund was launched in January 2026 and includes an ₹200 crore commitment from the sponsor and its affiliates.

Fund Details and Target

The India Credit Excellence Fund targets a total corpus of ₹3,000 crore, including a green shoe option of ₹1,500 crore. The final close is expected in the near term, with the fund maintaining a strong pipeline of investment opportunities.

Strategic Milestone and Platform Evolution

This achievement marks a significant step in Motilal Oswal Alternates' evolution towards becoming a multi-asset alternatives platform, coinciding with its 20-year journey in the alternatives space. Over the past two decades, the platform has built a distinctive track record across private equity and real estate, having raised over ₹23,000 crore across 11 funds and currently managing approximately ₹28,000 crore in assets.

The platform recently announced the final close of its fifth and largest private equity fund at ₹8,500 crore, demonstrating the momentum and scale of the franchise. The private equity platform has delivered consistent top-tier returns across five funds, while the real estate platform has achieved over 130 full exits across market cycles.

Investment Strategy and Leadership

The private credit fund is headed by Rakshat Kapoor, who brings over 25 years of experience in the structured financing industry. The fund focuses on secured lending and bespoke customized solutions targeting mid-market businesses that are profitable, growing, and fundamentally creditworthy, yet unable to access capital at the right tenor and structure from traditional sources.

Leveraging Motilal Oswal Alternates' deep equity investing framework and real estate underwriting expertise, the fund is designed to capture equity-linked upsides alongside regular credit yields. The investment committee draws on the platform's cross-asset expertise, bringing together senior professionals from private equity and real estate platforms.

Market Opportunity

According to Rakshat Kapoor, India's private credit market is at an inflection point, with the addressable market estimated to grow to over ₹10 lakh crore over the next few years. This growth is expected to be driven by mid-market corporates actively seeking flexible, non-dilutive capital as traditional financing channels face structural constraints.