PNB Housing Finance raises Rs 2,500 crore from LIC through bond sale

PNB Housing Finance on Thursday said that LIC has invested Rs 2,500 crore in the company by subscribing to its secured redeemable non-convertible debentures (NCDs).

This issuance is through private placement basis with a door-to-door tenure of 10 years, and the proceeds will be utilised by the company for its normal course of business operations, the company said.

"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 said this facility will augment the company's liquidity position and further strengthen the asset liability management position across buckets.

PNB Housing said that during the current financial year, it has so far 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 (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.