PNB Housing Finance raises ECBs of Rs 522 crore

PNB Housing Finance today in its press release informed the bourses that the company has raised fresh Rs. 522 crore external commercial borrowings (ECBs) from Sumitomo Mitsui Banking Corporation (SMBC), Singapore.

The company has recently raised Rs. 690 crore from IFC (International Finance Corporation) which will be utilised for lending to buyers of affordable housing.

The country’s central bank, RBI has allowed PNB Housing to borrow ECBs up to USD 750 million annually under the automatic route.

The company management believes that this facility will not only augment its liquidity, but will further balance its long term ALM position.

On the other hand, recently the rating agency CRISIL has downgraded its rating outlook on the long-term debt instruments, fixed deposit programme and long-term bank facilities of PNB Housing Finance to 'Negative' from 'Stable' while reaffirming the ratings at 'CRISIL AA+/FAAA'. The rating on the commercial paper programme has been reaffirmed at 'CRISIL A1+. This development could weigh on the company’s fund-raising plan in the future.

On Tuesday, the stock of PNB Housing Finance today opened at Rs. 706 and made an intra-day high of Rs. 715, up by 1.5 per cent on the BSE. At 15:21, the stock was trading at Rs. 712.65 on the BSE.