PNB Housing Finance board to consider Rs 80-bn debt issue on Thursday

PNB Housing Finance, a subsidiary of Punjab National Bank, is mulling a proposal to raise up to Rs 80 billion in one or more tranches by issuing debt securities.

The decision will be taken at the company's board meeting scheduled on Thursday. "Board meeting to consider the proposal of fund raising by way of debt issue," the company said in a regulatory filing.

The board will consider issuance of "secured and unsecured non-convertible debentures aggregating up to an amount of Rs 80 billion in one or multiple tranches," it said.

The company had conducted a non-deal road show for debt investors on March 5-6 in Hong Kong and on March 7 in Singapore.

PNB Housing Finance is the fifth largest firm in the housing finance business in the country.

The promoter PNB owns 33 per cent in the company, 37.3 per cent is the quality investment holdings, 17.1 per cent by foreign institutional investors, 6.5 per cent by mutual funds, 4.3 per cent by public and others while the rest is owned by financial institutions and corporate bodies.

PNB Housing Finance shares closed at Rs 1,119.35 on BSE, up 1.88 per cent from previous close.