The housing finance company (HFC) was able to raise funds at a cheaper rate as against the prevailing domestic market rates by nearly 60 basis points (bps) — at 8.4% — for a period of three years, a company executive said. The lender had raised $100 million from International Finance Corporation (IFC) through the ECB route in July this year for a five-year paper.

Sanjaya Gupta, managing director of PNB Housing Finance, said the fully-hedged facility has come at a landed cost that is much lower than the domestic pricing for similar tenures. “Continuous raising of ECBs under the present market environment and that too from global financial institutions and banks only exhibits the strong fundamentals and will not only augment our liquidity but will further balance our long term asset liability management (ALM) position,” he said.

The investment has been made under the Reserve Bank of India’s (RBI) automatic route for ECB. The central bank has allowed PNB Housing Finance to borrow up to $750 million through ECBs, the lender said in a statement.

The deposit accepting housing finance lender in a statement also said it plans to raise more funds through the ECB route. “Considering the other ECB proposals in the pipeline, we reiterate that in the coming months our company will further utilise the facility,” added Gupta.