PFC flags off roadshows for ECB

NEW DELHI, JULY 1: State-owned Power Finance Corporation PFC today flagged off roadshows for its 100 million external commercial borr...

NEW DELHI, JULY 1: State-owned Power Finance Corporation PFC today flagged off roadshows for its 100 million external commercial borrowings ECB in Singapore. The corporation will also organise the roadshows in Dubai, London, Paris and Milan apart from Mumbai, PFC sources said here.

The seven-year 100 million floating rate notes FRN ECB will also have a green shoe option of 50 million. Dutch bank ABN Amro is the lead arranger for the issue, the sources said. Co-arrangers for the issue are Citibank, SBI, ANZ Grindlays, Hongkong and Shanghai Banking Corporation HSBC, the sources said.

This is the second ECB in two successive years with the earlier issue of 100 million, being in July 1998, just after India conducted its nuclear tests. Mumbai roadshows are scheduled to be held tomorrow followed by other places, the sources said.

A high-level team headed by power secretary V K Pandit, chairman and managing director of PFC Uddesh Kohili and finance director of PFC T N Thakur are in Singaporefor the roadshows, the sources said.

PFC, exclusively catering to the funding requirements of various power utilities, is also planning to come out with another 100 million ECB in next four to five months period, the sources said.

The corporation planning to raise about Rs 2,000 crore this year will utilise the amount to fund the requirements of various state electricity boards and other power utilities including the private sector, the sources said. Out of the Rs 2,000 crore to be mopped up during the current fiscal, PFC would raise about Rs 1,000 crore from the domestic market.

For raising funds from the domestic market, PFC is talking to major national banks including State Bank, Punjab National Bank, Bank of Baroda, Jammu and Kashmir Bank and Indian Overseas Bank, they said.

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PFC mobilised about Rs 610 crore through long-term loans from banks at prime lending rate, Rs 151 crore through tax-free bonds and Rs 212 crore by taxable bonds during 1998-99.

The corporation8217;s sanctions as on March 31this year was at 3339 crore while disbursements were at Rs 2479 crore as against that of Rs 2922 crore and Rs 2026 crore respectively during 1997-98.