PNB Housing raises Rs 2,500 crore by issuing bonds to LIC

PNB Housing Finance has raised Rs 2,500 crore from Life Insurance Corporation of India in 10-year bonds, the company said Thursday.

This is PNB Housing's second fund raising in bonds this fiscal. It had raised RS 500 crore from a foreign bank a couple of months back.

The mortgage lender privately placed non-convertible debentures to LIC at 8.75% coupon.


PNB Housing Finance's chief financial officer Kapish Jain said the private placement is part of the lender's Rs 10000 crore fund raising plan for the next six months. "We will raise more when we see opportunity at good rate," he said.

The lender is also working on to raise Rs 2000 crore in equity.

During the current fiscal, PNB Housing Finance has so far mobilised Rs 27,000 crore through various long term sources including bonds, fixed deposits, and through securitisation of pooled loans.