PNB Housing Finance raises Rs. 1,853 crore

PNB Housing Finance raised Rs. 1,853 crore, i.e., US$ 265 million, by means of External Commercial Borrowing (ECB) on December 28, 2018. The company intends to utilize the funds for normal on-lending operations.

During Q3FY18-19, the company has raised total funds of Rs. 3,324 crore (US$ 465 million) through ECB for a tenure of 5 years. The cost of raising capital was much lower than the domestic pricing for a similar tenor.

Despite economic hurdles, the company fruitfully raised an aggregate amount of Rs. 20,000 crore in Q3FY18-19 at competitive interest rates. The funds were raised by means of both long-term and short-term facilities in the form of deposits, ECBs, NHB Refinance, securitisation (Direct Assignment route), bank borrowings and Commercial Papers (CPs).

The total borrowings during Q3FY18-19 can be bifurcated as follows – Deposits to the tune of Rs. 1,400 crore, ECBs of Rs. 3,324 crore, NHB refinance of Rs. 2,000 crore, bank borrowings of Rs. 1,725 crore, CPs amounting to Rs. 9,225 crore, and securitization of Rs. 2,700 crore.

Considering the aforementioned sources of funds, the company boasts liquidity of nearly Rs. 12,000 crore as on December 31, 2018. This includes cash and liquid investments worth Rs. 6,000 crore and sanctioned undrawn lines of Rs. 6,000 crore. Additionally, the company has a healthy pipeline of proposals including further ECBs at advanced stage of sanction.

On Wednesday, the shares of PNB Housing Finance opened at Rs. 916.00 per share, and hit a high and low of Rs. 925 and Rs. 915.50, respectively. At 2:35 pm, the stock was trading at Rs. 919.00 per share, down 0.59 per cent.