Punjab Housing Finance, powered by PNB, has decided to issue bonds in a private placement basis to raise approximately Rs 1,025 crore that will eventually help expand its business.
The company confirmed this by stating that the private placement of secured redeemable non-convertible debentures (NCDs) comprising green shoe option is already open for sale and will be closed on January 31. Payable semi-annually, these bonds provide coupon rate of 7.46 per cent for a period of 3 years and 3 months.
The raised funds will be utilized to open many new branches of Punjab Housing Finance in tier II and tier III cities and increase the funds in the loanbook.
“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,” says Jayesh Jain, CFO, PNB Housing Finance.
“PNB Housing Finance began trading in stock exchanges with an IPO in November. The NCD will be listed on the NSE.” He adds.
Source: ET Realty