PNB Housing Finance has received board approval to issue Rs 5000 crore in bonds to fund its business expansion.

The non-convertible debentures will be issued to investors through a private placement, the company announced Thursday following the board meeting.

This will be the lender's second fundraising this fiscal year, following an equity infusion of Rs 2490 crore through a rights issue of shares. In addition to bank borrowing, it intends to borrow approximately Rs 2500 crore from National Housing Bank through the latter's refinancing window.

The company however has no further plans for equity expansion in the next couple of years.

Its capital adequacy ratio is likely to elevate to 30% following the equity capital infusion. Its overall capital adequacy stood 24.4% at the end of March.