PNB Housing Finance signs pact with JICA to raise $75 million

PNB Housing Finance has signed an agreement with Japan International Cooperation Agency (JICA) to raise 75 million dollars (about Rs 568 crore) with co-financing of 25 million dollars (about Rs 190 crore) by Citibank to finance mortgage loans in the affordable housing segment.

New Delhi [India], April 7 : PNB Housing Finance has signed an agreement with Japan International Cooperation Agency (JICA) to raise 75 million dollars (about Rs 568 crore) with co-financing of 25 million dollars (about Rs 190 crore) by Citibank to finance mortgage loans in the affordable housing segment.

This will provide affordable housing to low-income households in India based on the Facility for Accelerating Financial Inclusion in Asia.

"This will be JICA's first debt funding in the housing finance sector in India. We look forward to having a long term relationship with them," said PNBHF Managing Director Sanjaya Gupta.

"In spite of the current lockdown, with our operational robustness and resilient human capital, the team worked relentlessly to have the agreement executed," he said in a statement.

PNBHF maintained liquidity of Rs 7,588 crore (not considering statutory liquidity ratio investments) as on March 31 and has additional sanctioned but undrawn lines of Rs 3,994 crore. It has serviced all committed liabilities till date without exercising the moratorium option.

The country's fourth-largest housing finance company closed the year with healthy assets under management (AUM) of Rs 84,000 crore and deposit mobilisation of Rs 9,200 crore in FY20.

"Though the impact of the changed scenario arising due to COVID-19 is getting worked out, as an orgsation we continue to be extremely vigilant and focused towards recovery initiatives," said Gupta.

The loan spread is expected to be within the guided range of 200 to 215 basis points for the current financial year, he said.

( With inputs from ANI )