PNB Housing Finance, India’s one of the largest mortgage lender has said that it has raised US$ 200 million (about Rs. 1,470 crores) through External Commercial Borrowing (ECB), making its first fundraising, under the automatic route of the RBI.
According to the company’s statement, the Reserve Bank of India has allowed housing finance companies to borrow through ECB up to US$ 750 million annually under the automatic route, from this year. The funds are to be used for normal business operations.
The company said in the statement, “This will not only enhance our liquidity profile but also further enhance our ALM position as the facility is for 5 years. The fully hedged landed cost of this facility is lower than the onshore pricing of similar tenure loan.”
Managing Director, Sanjaya Gupta, said, “We are thankful to RBI for allowing Housing Finance Companies to borrow under the automatic route. Raising of ECB under the current environment shows girth of the Company and deep faith of the lending community.”
“This will not only enhance our liquidity profile but further enhance our ALM position as the facility is for 5 years. The fully hedged landed cost of this facility is lower than the on-shore pricing of similar tenure loan,” he added.
Chief Financial Officer, Kapish Jain, also stated, “We are confident that in the coming weeks, our Company shall fully utilize the limit as there is a keen interest of lenders to lend us through this route. Additionally, the Company has sanctioned a facility for ECB from other lending institutions for which drawdown formalities are under process.”