PNB Housing Finance plans to raise $300 mln in foreign debt

PNB Housing Finance plans to raise USD 300 million (about Rs 2,000 crore) through external commercial borrowing (ECB) to fund affordable housing segment.
"We have got approval for National Housing Bank for ECB. We are awaiting clearance from RBI for USD 300 million ECB," PNB Housing Finance Managing Director Sanjaya Gupta told PTI.
The fund raised would be utilised to finance affordable housing segment, he said, adding ADB has already agreed to provide USD 150 million under the ECB route.
PNB Housing Finance is a subsidiary of Punjab National Bank (PNB), which holds 51 per cent stake while remaining is owned by Carlyle Group, a global investment firm.

In the last fiscal, the housing finance company had raised USD 100 million through ECB. Of this, USD 50 million came in from International Finance Corporation and remaining from ANZ Bank for affordable housing finance segments with additional focus on the low income states of India, women borrowers and for green residential units.
That USD 100 million fund has been completely exhausted, he added.

As per the RBI norms, low cost affordable housing units have been defined as units where the property cost is up to Rs 30 lakh where carpet area unit does not exceed 60 square meteres and loan amount is capped at Rs 25 lakh.

Talking on business numbers Gupta said, the loan book of the company has crossed Rs 25,000 crore.
The company had posted a net profit of Rs 196 crore and profit before tax of Rs 296 crore for the fiscal ended March 2015, he said.