New Delhi, May 2 (IANS): The PNB Housing Finance board will consider fund raising up to $1 billion through debt instruments of external commercial borrowings (ECB) and non-convertible debentures (NCDs) in its upcoming board meeting on May 9.

The housing arm of the state-run Punjab National Bank (PNB) on Thursday said that it will consider raising up to $1 billion through external commercial borrowings (ECB) and issuing non-convertible debentures worth up to Rs 10,000 crore in its board meeting on May 9.

"PNB Housing Finance Ltd has informed regarding the schedule of Board Meeting to consider the proposal to issue NCDs of Rs 10,000 crore and ECB of 1 billion dollar", the company said.

Last month, PNB Housing Finance was put under rating agency CARE's 'credit watch' in view of its capital raising requirement, which the rating agency said, was critical for the lender to maintain comfortable capital adequacy while achieving target growth.

In its response, PNB Housing had said that its current capitalisation level was adequate. The company also said it was planning to raise capital to achieve its target growth and would soon present the proposal to the board.

The PNB Housing Finance stock was trading 3.76 per cent down at Rs 681.50 during afternoon on Thursday on the BSE.