PNB Housing Finance said it will seek shareholders’ approval next month to raise up to Rs 45,000 crore through debt securities. The company’s annual general meeting is scheduled to take place on August 5, 2020.
Shareholders are being requested to authorise the board of directors to offer, from time to time, the subscription of redeemable, secured/unsecured non-convertible debentures (NCDs), PNB Housing Finance said in a regulatory filing.
The housing finance company may issue the bonds through private placement or by way of public issue.
As on March 31, 2020, bonds/non-convertible debentures constitute a significant portion of the total borrowings of the company. Borrowings through these instruments help to raise resource in a flexible and requirement driven manner, it added.
“The company intends to raise long term funds through bonds in the current year as well to meet lending requirements.”
In 2019-20, the company had a net interest income of Rs 2,308 crore — a growth of 12 per cent from a year ago.
However, disbursements in 2019-20 fell 48 per cent to Rs 18,626 crore. The assets under management dipped 2 per cent to Rs 83,346 crore as on March 31, 2020. As much as 82 per cent of the AUM comprised retail assets.
“Overall housing credit growth is expected to be slower in the first half, while recovery in the second will depend on the economic turnaround,” said chairman S.S. Mallikarjuna Rao.
