NEW DELHI: The Life Insurance Corporation (LIC) of India has subscribed to the Rs2500 crore secured redeemable non-convertible debentures (NCDs) issued by PNB Housing Finance Ltd, one of the leading housing finance company.
This issuance is through private placement basis with a door to door tenure of 10 years and the proceeds will be utilised by the company 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 Rs500 crore subscribed by a foreign bank.
“We convey our gratitude to these financial institutions for their continuous support to the organisation. This facility will augment our liquidity position and further strengthen our ALM position across buckets,” said Sanjaya Gupta, Managing Director, PNB Housing Finance Ltd.
Gupta said the successive issuances of NCDs under the present market environment once again exhibit the strong fundamentals, core strength and robustness of the company’s balance sheet.
During the current financial year, PNB Housing Finance has so far mobilised about Rs27,000 crore through long term sources. This mobilisation includes Rs6,379 crore through fixed deposits, Rs5,899 crore through securitisation (Direct Assignment route), Rs3,000 crore through NCDs, Rs1,211 crore ($175 million) through ECBs and balance in the form of bank facilities.
Correspondingly during the period, HFC has also significantly cut down its dependency on Commercial Paper to around 5 per cent 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.