INSUBCONTINENT EXCLUSIVE:
KOLKATA | MUMBAI: PNB Housing Finance is looking to raise another $250-300 million through external commercial borrowing by November amid
market turmoil and fear of a further squeeze in the liquidity system.
This will be the second external borrowing by the Delhi-based home
loan lender in as many months although the company maintained that it has not faced any tightness in cash flow.
It had mobilised $200
million from overseas investors only last week
The company is also looking to securitise home loan pools worth Rs 1,000-1,500 crore which would help it free capital and lend more
The cost of external borrowings including hedging prices comes cheaper by 25-40 basis points for it.
Reserve Bank of India allowed housing
finance companies to raise up to $750 million from overseas investors through the automatic route for up to five years
Of this, just about $50 million of this can be short-term borrowing for three years.
Jain said PNB Housing borrowed nothing from local
capital markets in September.
However, the company is looking to add more to its cash flows by securitising home loan pools worth Rs
1,000-1,500 crore in October itself as it has already received sanction letters from twothree large state-owned banks, said a person with
declined to divulge details on the quantum of assets to be sold this month.
The market received a balm from SBI which announced its support
for NBFCs by way of securitisation deals.
