PNB Housing Finance plans to issue bonds worth up to Rs2,000 crore

15 Jun 2022 , 12:32 PM

PNB Housing Finance declared on Tuesday that its board of directors has approved a private placement bond offering of up to Rs2,000 crore. In May of last year, the housing finance company, pushed by the city-based Punjab National Bank (PNB), reached an agreement with joint-venture partner Carlyle Group, among other investors, to fund Rs4,000 crore in equity capital.

However, after suffering regulatory and legal challenges, it was forced to abandon the acquisition in October. Quality Investment Holdings (QIH), a Carlyle Group subsidiary, owns nearly 32% of PNB Housing Finance. Following that, the corporation stated that it will raise funds using debt instruments.

PNB Housing Finance said in a regulatory filing that its board of directors met on June 14, 2022, and approved the issuing of non-convertible debentures worth up to Rs2,000 crore on a private placement basis. The board also approved the ESOP III Scheme and Restricted Stock Unit (RSU) Scheme 2022, both of which are subject to shareholder approval.

“The maximum number of Options that may be issued pursuant to the plan must not exceed 20,00,000 options in number that will be convertible into an equivalent number of equity shares,” according to the ESOP program. The board also adopted an amendment to the current Employee Stock Ownership Plan (ESOP) 2016 that will allow the Nomination and Remuneration Committee to make decisions about vesting terms at the time of option grants, subject to shareholder approval.

According to PNB Housing, the maximum number of stock units that may be issued under RSU is 8,50,000, which will be convertible into an equivalent number of equity shares. PNB Housing Finance’s stock fell 2.69% to Rs343.70 a share on the BSE.