Last Updated : Monday, July 29, 2019 12:53:40

PNB Housing Finance rasies $100 million from IFC

NEW DELHI | MUMBAI | AHMEDABAD-GANDHINAGAR | RAJKOT – In a press release submitted to the Indian Stock Exchanges, Indian Bank Punjab National Bank’s housing finance arm PNB Housing Finance Ltd said of having raised 6.9 billion rupees (~US Dollars ($) 100 million) from World Bank’s International Finance Corporation (IFC) to finance purchase of affordable housing projects.

The press release submitted by the company to the Indian Bourses read that, PNB Housing Finance raises $100 million (~ INR 690 Crore) from IFC to finance purchase of affordable housing projects.

PNB Housing Finance Limited, India’s fourth largest housing finance company by loan assets and second largest by deposits, has raised $100 million from International Finance Corporation, a member of the World Bank Group, for on lending to buyers in affordable housing projects.

 The investment was made under the central bank’s automatic route in the revamped external commercial borrowings framework.


MANAGEMENT COMMENTS

Sanjaya Gupta, Managing Director, PNB Housing Finance Ltd said,

“We express our gratitude to IFC for their continuous support and trust in the Company’s operations and overall robustness. This is the first ECB disbursement during the current financial year under the RBI Automatic Route. Several other ECB proposals are in the pipeline. The fully-hedged facility has come at a landed cost that is much lower than the domestic pricing for similar tenures. Raising of ECB under the present market environment and that too from a multilateral financial institution like the IFC demonstrates the strength of PNB HFL and the faith of the lending community in the sector. The line of credit will not only enhance the liquidity but will further balance our long-term ALM position as the facility is for five years,” 

“I am proud to announce that being a responsible member of society we are adhering to all the environmental and social norms prescribed by the IFC and have updated our website accordingly. The RBI has allowed us to borrow ECB up to USD 750 million annually under the automatic route and considering the strong fundamentals and inherent growth of the Company, we are hopeful that in the coming months our company will further utilize the facility.”

India needs to build 11 million homes in the affordable segment. At an average of 4.6 people per household, the 11 million units gap implies that nearly 50 million people do not have adequate housing.

Hemalata Mahalingam, Manager – Financial Institutions Group, IFC South Asia said,

“To support the Indian government’s vision of Housing for All by 2022, our country strategy places a strong emphasis on the affordable housing sector.”  

“Our partnership with PNB Housing Finance will help them further expand to smaller towns and cities and reach low-income customers with loans to buy homes and help raise their living standards.”


THE RELATIONSHIP

PNB Housing Finance is IFC’s long-standing client.

IFC assisted the company in raising its first foreign exchange financing for on-lending to buyers of affordable housing.

Later, IFC helped the company to issue the first green bond in India for financing construction of green buildings.

The company is a member of IFC’s Sustainable Housing Leadership Consortium that brings together leading developers, financiers, and the government to support the ecosystem for construction of green homes.


ABOUT PNB HOUSING

PNB Housing Finance Limited (NSE: PNBHOUSING, BSE: 540173) is promoted by Punjab National Bank and is a registered Housing Finance Company with National Housing Bank (NHB).

The Company got listed on the Indian stock exchanges on 7th November, 2016.

The Company offer its retail customers “housing and non-housing loans”.

The Company is also  2 into construction finance loans to real estate developers for residential housing.

PNB Housing Finance is a deposit taking Housing Finance Company.


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