PNB Housing Finance Monday said it has raised Rs 1,775 crore by issuing commercial papers (CPs) to mutual funds and banks during this month.
PNB Housing Finance Monday said it has raised Rs 1,775 crore by issuing commercial papers (CPs) to mutual funds and banks during this month. “In spite of the current tight market scenario, our company has successfully raised funds through CPs aggregating to Rs 1,775 crore at competitive rates,” Managing Director Sanjaya Gupta said in a statement. These borrowings in the present environment exhibit the trust and faith of the lender community in PNB Housing Finance, he added.
The company is comfortable with its liquidity and asset and liability management(ALM) and the money raised in this month is in addition to the fund raised through external commercial borrowings (ECBs), Chief Financial Officer Kapish Jain said.
“This fund raise shall not increase our overall exposure to CPs and we would continue to maintain our overall borrowing through CPs at around 12-13 percent compared to 19 percent as of March 31, 2018,” Jain said. He also said the company did not raise any funds from capital markets in the previous month in view of surplus liquidity.
As on date, the company has cash and liquid investments of nearly Rs 6,000 crore, PNB Housing Finance said. Punjab National Bank (PNB) holds 32.79 percent stake in PNB Housing Finance, another 32.36 percent holding is with Carlyle Group through its investment arm Quality Investment Holdings. Stock of PNB Housing was trading flat at Rs 706.50 on BSE.