New Delhi : Housing finance company, PNB Housing Finance Limited has raised fresh USD 75 million ECB from Sumitomo Mitsui Banking Corporation (SMBC) Singapore. The ECB (External Commercial Borrowing) is under the Reserve Bank’s automatic route of approval and the proceeds will be used by the Company as per the applicable RBI guidelines.
Speaking on the occasion, Mr. Sanjaya Gupta, Managing Director, PNB Housing Financial Ltd said, “As we have mentioned a few days back, this is the second ECB borrowing of the Company for the Financial Year 2019-20. Surely we convey our gratitude to SMBC who until now has been according their continuous support through the domestic route only. The landed cost of the fully hedged facility has been much lower than the present domestic pricing for similar tenure. Continuous raising of ECBs under the present market environment and that too from global financial institutions and banks only exhibits the strong fundamentals, core strength and inherent growth prospects of the Company and the trust of the international lenders in us. This facility will not only augment our liquidity but will further balance our long term ALM position.”
He further added, “We are also grateful to the Reserve Bank of India for further liberating and relaxing the ECB norms and we are exploring their latest Circular of 30th July 2019 for greater clarity and opportunity. The RBI has allowed to borrow ECB up to USD 750 million annually under the automatic route and we reiterate considering the other ECB proposals which are in pipeline, that in the coming months our company will further utilize the facility.”