NHB to tap funds from overseas market
The National Housing Board (NHB) shall raise $200 million through ECB (external commercial borrowing) within the next fortnight. This will ensure will ensure that home loan players meet the $1 billion target of foreign fund raising in FY14. NHB regulates pure-play home financiers. It refinances a part of the housing finance portfolios and acts as the sector regulator for housing finance companies
NHB chairman and managing director RV Verma told that approval from RBI is still awaited. Other companies which have used overseas markets to raise funds are HDFC, LIC Home Finance, Dewan Housing Finance and PNB Housing Finance. The funds for NHB are likely to be at a rate of Libor (London Interbank Offered Rate)—plus 1.50-1.60 per cent.
NHB had earlier mobilised Rs 4,000 crore through the tax-free bonds in the domestic market.
Source: The Hindu Business Line
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