According to market sources, World Bank’s arm IFC has agreed to underwrite $150 million from its own funds while the balance of $250 million would be raised through other investors.
The currency will be lifted via PNB Housing’s masala bonds in rupee denominated bonds issued in overseas capital markets, sources added.
PNB holds a stake in PNB Housing Finance of 32.96 percent.
PNB Housing Finance in a statement filed with stock exchanges, said that, from 33 percent stake, 20 percent of the stake is locked up till 7th November 2019 as per the Listing Obligations and Disclosure Requirements of Securities And Exchange Board Of India (SEBI).
Masala bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk.