PNB Housing Finance raises fresh ECB of USD 265 Mn

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New Delhi : PNB Housing Finance Limited, India’s 5th largest Housing Finance Company by Loan Assets and 2nd largest by deposits, has successfully raised USD 265 Mn (INR 1,853 Crore) through fresh External Commercial Borrowing (ECB) on 28th December 2018.

The funds will be utilised for normal on-lending operations of the Company. Speaking about it, Mr. Sanjaya Gupta, Managing Director & CEO, PNB Housing Finance Limited said, “Company has raised in aggregate USD 465 Mn (INR 3,324 Crore) through ECB during Q3 of FY2018-19 of five year tenure. The facility has come at a landed cost which is much below the domestic pricing for similar tenor. In spite of the market headwinds, PNB Housing has successfully raised about INR 20,000 Crore in aggregate at competitive interest rates during Q3 of FY2018-19. This includes both long-term and short-term facilities through Deposits, ECBs, NHB Refinance, Securitisation (Direct Assignment route), Bank Borrowings and Commercial Papers (CPs). We express our gratitude towards the regulators as well as the lending community, both International and Domestic, for their continuous support and trust in the Company. This has been possible because of our strong business fundamentals, for a long period of time”

He further added, “The borrowing during Q3 includes Deposits of  INR 1,400 Crore, ECBs of USD 465 Mn (INR 3,324 Crore) from various lenders, NHB refinance of INR 2,000 Crore (from sanctioned facility of INR 3,500 Crore), Bank borrowings of INR 1,725 Crore, CPs amounting to INR 9,225 Crore and Securitisation (Direct Assignment route) of ~ INR 2,700 Crore from different counterparties. The CPs raised are a roll-over of the existing CPs and we plan to maintain an exposure of about 12-13% in CPs of the entire borrowing. Apart from CPs, all the other fresh borrowings in this quarter are of long term in nature, thereby helping the Company in further strengthening the ALM profile and business growth of the Company. Factoring the above, the Company as on 31st December 2018 had a  liquidity of about INR 12,000 Crore which includes cash and liquid investments of ~ INR 6,000 Crore and ~INR 6,000 Crore of sanctioned undrawn-lines. In addition to these, there is sufficient pipeline of proposals, including additional ECBs, at advanced stage of sanction. “

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