PNB Housing Finance To Raise Rs 1,025 Crore Through Bonds
Punjab Housing Finance Ltd plans to raise up to Rs 1,025 crore for business expansion by issuing bonds on a private placement basis. The private placement of secured redeemable non-convertible debentures (NCDs) for a total amount of Rs 1,025 crore including green shoe option, will open on January 30, the company said in a statement. The issue will close on January 31. The funds raised will be used to spread out branch network in tier II and III cities and grow loan book while maintaining an adequate capital adequacy ratio, the company said. "The company is raising funds from the bond market after a long time at the finest spread which is better than the pre-IPO levels. We continue to maintain a diversified and cost effective funding mix with one of the lowest cost of borrowing in the industry," said Jayesh Jain, chief financial officer of Punjab National Bank-promoted PNB Housing Finance. The NCD issue is rated 'AAA' by Care Ratings and India Ratings. The bonds will offer a coupon rate of 7.46 per cent, payable semi-annually, for a tenure of 3 years and 3 months.
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