PNB Housing Finance said that LIC has infused Rs 2,500 crore in the company by subscribing to its secured exchangeable non-convertible debentures (NCDs).
The company said that this issuance is via private placement basis with a door-to-door validity of 10 years, and the proceeds will be used by the company for its normal course pertaining to business operations.
“This is the second NCD issuance by the company for the financial year 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,” said Sanjaya Gupta, Managing Director, PNB Housing Finance.
Gupta also said that this facility will expand the company’s liquidity situation and strengthen the asset liability management arrangement across buckets.
During the current financial year, PNB Housing has so far mobilised around Rs 27,000 crore vialong-term sources.
This comprises of 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 (USD 175 million) through ECBs and balance in the form of bank facilities, the company said.
“Correspondingly, during the period, we have also significantly cut down our dependency on Commercial Paper to around 5 per cent 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,” it said further.