PNB Housing Finance on Thursday said that Insurance Corporation of India (LIC) has invested Rs 2,500 crore in the company by subscribing to its secured redeemable non-convertible debentures (NCDs). The issuance of bonds having a tenure of 10 years is via private placement.
The housing finance company said the proceeds would be used for its normal course of business operations. Sanjaya Gupta, managing director of PNB Housing Finance, said in a statement: “As we indicated in the last earnings call, this is the second NCD issuance by the company for FY19-20 after the first lot of Rs 500 crore was subscribed by a foreign bank.” The NCD facility will augment the firm’s liquidity and ALM position across buckets.
During the current fiscal, PNB Housing Finance has so far mobilised about Rs 27,000 crore through long-term sources, including 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 external commercial borrowings and the rest in the form of bank facilities. Dependency on commercial paper was reduced to around 5% of total resources during the period, said Gupta.