PNB Housing Finance board approves raising Rs 2,000 cr by issuing bonds

PNB Housing Finance announced that its board has approved on a private placement basis raising up to Rs 2,000 crore by issuing bonds.

In May 2021, the home financing firm, promoted by the city-based Punjab National Bank (PNB), reached an agreement with joint-venture partner Carlyle Group, among other investors, to fund Rs 4,000 crore in equity capital.

However, after going through regulatory and legal difficulties, 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 would seek funds using debt instruments.

PNB Housing Finance revealed that its board of directors met on June 14, 2022, and authorised the issuing of non-convertible debentures worth up to Rs 2,000 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 ESOP programme revealed that the maximum number of options that may be granted according to the plan must not exceed 20,00,000 Options in number that will be convertible into an equivalent number of equity shares.

The board also adopted an amendment to the existing Employee Stock Ownership Plan (ESOP) 2016 that allows 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 awarded 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 Rs 343.70 a share on the Bombay Stock Exchange (BSE).

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