Recently PNB Housing Finance said to media that LIC has invested ₹2,500 crore in the finance company by subscribing to its secured redeemable non-convertible debentures (NCDs).
As per the bank, this issuance has been made through private placement basis with a door-to-door duration of 10 years. It said that the revenue generated would be utilised by the finance for its normal course of business operations.
“This is the second NCD issuance by the company for the financial year 2019-20 after the first lot of ₹500 crore was subscribed by a foreign bank. This issuance of ₹2,500 crore has been subscribed by Life Insurance Corporation of India,” said Sanjaya Gupta, Managing Director, PNB Housing Finance.
Gupta also added, that this investment will help the liquidity position of the company and also it will give strength to the asset liability management position across buckets.
PNB Housing financed said that during the current financial year, it has mobilized around ₹27,000 crore through its long-term sources.
This includes ₹6,379 crore through fixed deposits, ₹5,899 crore through securitisation (direct assignment route), ₹3,000 crore through NCDs, ₹1,211 crore ($175 million) through ECBs and balance in the form of bank facilities, the company said.
“Correspondingly, during the period, we have also significantly cut down our dependency on Commercial Paper to around 5% of total resources as of current date. In addition to this company has a healthy pipeline of sanctioned lines which are under process of disbursement,” it said further.
This investment is surely going to help the PNB housing finance for long term in generating more revenue.