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PNB Housing raises Rs. 500 crore from IFC

Posted on by Track2Realty

Bottom Line: Funding raised to finance green residential projects as PNB is first HFC in India to successfully issue Green Bonds. 

PNB Housing Finance, Punjab National Bank, Real estate finance, Real estate funding, Real estate debt, Debt & equity in real estate, NRI investment, Trck2RealtyPNB Housing Finance has issued secured fixed rate NCDs to International Finance Corporation (IFC) to raise Rs. 500 crore for funding Green Residential projects. With this, PNB Housing has become the first housing finance company (HFC) to successfully issue Green Bonds.

The funds will be used to finance green residential projects which are certified by recognized green building certification standards, including EDGE (certification programme developed by IFC).

Speaking on the occasion, Sanjaya Gupta, Managing Director, PNB Housing Financial said, “We are delighted to become the first housing finance company to successfully issue Green Bonds. This will further give a fillip to our intent to develop a committed green lending practice in the sector for a sustained growth of green loan portfolio. Environment conservation is a priority area and the end users are also realizing the need for creating healthier neighborhoods. This is a landmark transaction in the realm of green infrastructure financing in India and will foster a change in housing sector’s approach towards climate change, environment protection and healthier living”.

Jayesh Jain, Chief Financial Officer, PNB Housing Finance Limited, further added, “As this fund will be exclusively used to support investments in green energy efficient buildings, the same will help reduce greenhouse emissions and to curb pollution, thus, helping us to establish a market and an ecosystem for green housing construction in India.”

PNB Housing has pre-approved more than 62 green projects across Delhi-NCR, Mumbai, Pune and Bengaluru to name a few.  The retail exposure towards green buildings is already around INR 250 crores.

Citi Property, JPMorgan initiate arbitration BPTP after time-bound exit failed

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Track2Media, Trck2Realty, Track2InfraTrack2Realty-Agencies: Two private equity funds, Citi Property Investors and JPMorgan Chase, have initiated separate arbitration proceedings against BPTP on the grounds that it has failed to provide a time-bound exit for their respective investments in the company.

The two global funds have alleged a breach of contract on the part of BPTP, which was to implement an Initial Public Offering (IPO) by July 8, 2011, sources said requesting anonymity.

According to these insiders, arbitrators have been appointed and proceedings are expected to begin shortly in the two cases. Citi Property Investors, which was bought by Apollo Global Management from Citigroup in 2010, had invested Rs.322.5 crore for a 5.89% stake in the company in 2007.

Harbour Victoria Investment Holdings, a part of JPMorgan Chase & Co group of companies had picked up 6.21% stake in the company for around Rs.260 crore in 2008-2009.

Both deals happened when BPTP was emerging as a key player in and around Delhi, acquiring marquee land parcels for record prices. According to the original terms of the agreement, BPTP offered the investors an exit through an IPO.

Though BPTP got a nod from the Securities and Exchange Board of India, the stock market regulator, for a 1,500-crore IPO in May 2010, it decided to defer it, like many other developers at the time, due to uncertain market conditions.

Citi Property India recently filed a petition in the Delhi High Court and has sought arbitration under Section 9 of the Arbitration and Conciliation Act. The court gave an interim order asking BPTP to provide securities in the form of unencumbered properties against CPI’s investment and the case is still ongoing. It also asked BPTP not to sell, alienate or otherwise encumber any of the ‘selected projects’ till the next date.

In the case of JPMorgan, the agreement with BPTP included a put option agreement, whereby the investor will get an exit through promoter buyback of shares at a fixed rate of return if the IPO did not happen.