PNB Housing Finance Raises Rs 2,500 Crore By Issuing Bonds To LIC
The proceeds of the fundraising from LIC will be utilised by PNB Housing Finance for its normal course of business operations.
Life Insurance Corporation of India has invested Rs 2,500 crore in PNB Housing Finance Ltd. by subscribing to the mortgage lender’s secured redeemable non-convertible debentures.
This issuance is on private placement basis with a door-to-door tenure of 10 years. The proceeds will be utilised by the company for its normal course of business operations.
"This is the second NCD issuance by the company for 2019-20 after the first lot of Rs 500 crore was subscribed by a foreign bank. This issuance of Rs 2,500 crore has been subscribed by Life Insurance Corporation of India," PNB Housing Finance Managing Director Sanjaya Gupta said in an exchange filing.
Gupta said this facility will augment the company's liquidity position and strengthen the asset liability management position across buckets.
PNB Housing Finance has, so far in 2019-20, mobilised nearly Rs 27,000 crore through long-term sources. This includes Rs 6,379 crore through fixed deposits, Rs 5,899 crore through securitisation (direct assignment route), Rs 3,000 crore through NCDs, Rs 1,211 crore through ECBs and balance in the form of bank facilities, the company said.
"Correspondingly, during the period, we have also significantly cut down dependency on commercial paper to around 5 percent of total resources as of current date. In addition to this, company has a healthy pipeline of sanctioned lines which are under process of disbursement," PNB Housing Finance said.