The private placement of secured redeemable non-convertible debentures (NCDs) for a total amount of Rs 1,025 crore including green shoe option, will open on January 30, the company said in a statement.
The issue will close on January 31.
The funds raised will be used to spread out branch network in tier II and III cities and grow loan book while maintaining an adequate capital adequacy ratio, the company said.
"The company is raising funds from the bond market after a long time at the finest spread which is better than the pre-IPO levels. We continue to maintain a diversified and cost effective funding mix with one of the lowest cost of borrowing in the industry," said Jayesh Jain, chief financial officer of Punjab National Bank-promoted PNB Housing Finance.
The NCD issue is rated 'AAA' by Care Ratings and India Ratings.
PNB Housing Finance began trading in stock exchanges with an IPO in November. The NCD will be listed on the NSE, it added.
A deposit taking housing finance company, PNB Housing Finance offers retail customers housing and non-housing loans.
It also provides construction finance loans to real estate developers for residential housing.
PNB Housing Finance shares ended 1.55 per cent lower at Rs 910.30 apiece on the BSE, whose benchmark Sensex index finished down 0.12 per cent.
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