New Delhi: PNB Housing Finance Limited (PNBHFL) has raised fresh $75 million (Rs 522 crore) via external commercial borrowing (ECB) from Sumitomo Mitsui Banking Corporation (SMBC) Singapore. The company had last month raised $100 million via ECB from the International Finance Corporation (IFC).
On Tuesday noon, PNBHFL shares were trading 0.72 per cent higher at Rs 709.80.
The ECB is under the Reserve Bank’s automatic route of approval and the proceeds will be used by the company as per the applicable RBI guidelines.
PNBHFL, Managing Director, Sanjaya Gupta said: “This is the second ECB borrowing of the company for the 2019-20. The landed cost of the fully-hedged facility has been much lower than the present domestic pricing for a similar tenure. Continuous raising of ECBs under the present market environment and that too from global financial institutions and banks only exhibits the strong fundamentals, core strength and inherent growth prospects of the company and the trust of the international lenders in us. This facility will not only augment our liquidity but will further balance our long-term ALM (Asset Liability Match) position.”
PNBHFL, which is a deposit taking housing finance company, plans to raise more funds through the ECB route. “Considering the other ECB proposals in the pipeline, we reiterate that in the coming months our company will further utilise the facility,” he said.
The Reserve Bank had in January relaxed the ECB norms, allowing eligible borrowers to raise up to $750 million annually under the automatic route.