Mumbai, Nov 8 (IANS): Housing finance company PNB Housing Finance has raised Rs 2,500 crore through the issue of secured redeemable non-convertible debentures (NCDs) to state-run LIC.

The issuance was done on a private placement basis with a "door to door tenure of 10 years".

The company in a statement on Thursday said the proceeds from the issuance will be utilised for its normal course of business operations.

"As we indicated in the last earnings call, this is the second NCD issuance by the company for the financial year 19-20 after the first lot of Rs 500 crore was subscribed by a foreign bank," PNB Housing Finance's Managing Director Sanjaya Gupta was quoted as saying in the statement.

"This issuance of Rs 2,500 crore has been subscribed by Life Insurance Corporation of India. This facility will augment our liquidity position and further strengthen our ALM position across buckets."

As per the statement, during the current FY, PNB Housing Finance has so far mobilised Rs 27,000 crore through long term sources.

"This mobilisation includes Rs 6,379 crore through Fixed Deposits, Rs 5,899 crore through securitisation (Direct Assignment route), Rs 3,000 Crore through NCDs, Rs 1,211 crore ($175 millon) through ECBs and balance in the form of bank facilities," the statement said.

"Correspondingly during the period, we have also significantly cut down our dependency on Commercial Paper to around 5 per cent of total resources as of current date."

In addition, the company said that it has a "healthy pipeline of sanctioned lines which are under process of disbursement".