Home loan service provider, PNB Housing Finance, announced yesterday that it has raised a capital of Rs.1,775 crore through the sale of commercial papers to various banks and mutual funds in the country. The fund raised through the issue of commercial papers (CPs) is in addition to the fund raised through External Commercial Borrowings (ECBs).
The company’s Managing Director, Sanjaya Gupta, noted that the fundraising was successful at a competitive rate despite the tight market situation we face today. He also noted that this fundraising during the tough market environment represents the faith that lenders have in PNB Housing Finance.
According to Chief Financial Officer, Kapish Jain, the liquidity position of the company is solid and the company is also satisfied with its asset and liability management. Despite this borrowing, the company’s exposure to commercial papers will not be increased. Mr. Jain also noted that the company will maintain its current exposure level of 12% to 13% even after the borrowing. The company noted that the borrowing through commercial papers was 19% at the end of March 31, 2018.
The company did not raise any funds from the capital markets as it would create surplus liquidity. The company revealed that it has cash and liquidity investments worth Rs.6,000 crore till date.
PNB Housing Finance is promoted by Punjab National Bank (PNB). PNB currently holds about 32.79% stake in the company along with the Carlyle Group’s subsidiary Quality Investment Holdings, which owns 32.36% stake in the company. The company went public in November 2016 and has been trading in both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The company has also witnessed substantial growth in recent days. During the fourth quarter that ended on March 31, 2018, PNB Housing Finance reported a 44% growth in net profit compared to the same period of the previous year. The company’s profit for the previous financial year stood at Rs.829.41 crore.
Source: Economic Times