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PNB Housing Finance To Raise Funds From IFC

May 28, 2014

@PNB_HousingLimited is raising $50 Mn in senior loans from @IFC to expand its affordable housing finance portfolio and increase its presence in Tier II and Tier III cities.

PNB has obtained RBI's approval to raise $100 Mn in ECB to focus on the low income states of India, women borrowers and for offering mortgage financing for 'green' residential units.

The Pubjab based NBFC is promoted by PNB which holds a majority stake whereas the residual stake (49%)lies with Destimoney Enterprises Private Limited which is backed by New Silk Route Advisors Pvt. Ltd.

It has a marketing and distribution network of 32 branches that focus on sales and customer service and 3 regional offices that oversee operations of underwriting and processing hubs.

The lending profile of PNBHFL is focused (65%) on individual retail loans for home purchase, improvement etc., followed by house/property mortgage loan to individual proprietors and business owners (26%). Around 9% of the lending portfolio has exposure to real estate construction and builder finance.

However, IFC's loan will be utilized only for individual retail home loans under the affordable housing scheme for housing finance companies.

As on December 31, 2013, PNB Housing Finance had a R9448 Cr loan book with a net worth of R920 Cr. In 2012-13, the company had booked the profit of R92 Cr.

Recently General Atlantic LLC and @Apax LLP were planning to acquire Destimoney's 49% stake in PNB Housing Finance Limited.

@Dewan_Housing limited and Adhar Finance Private Limited are some of the housing finance companies in IFC's portfolio.

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Source: DealCurry (India)

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