This story is from January 31, 2017
Punjab Housing Finance Ltd
plans to raise up to Rs 1,025 crore for business expansion by issuing bonds in 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,"Jayesh Jain
, Chief Financial Officer,PNB Housing Finance
said. The NCD issue is rated 'AAA' by Care Ratings and India Ratings. The bonds will offer coupon rate of 7.46 per cent, payable semi-annually, for a tenure of 3 years and 3 months. PNBHousing Finance
began trading in stock exchanges with an IPO in November. The NCD will be listed on the NSE, it added. A deposit taking housingfinance
company, PNB Housing Finance offers retail customers housing and non-housing loans. It also provides construction finance loans to real estate developers for residential housing. Stock of the company was trading 1.42 per cent lower at Rs 911.50 on BSE. KPM JM
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