PFC issue may be hit by S&P downgrading

MUMBAI, May 23: Power Finance Corporation's (PFC) plan to launch a 100 million dollar syndicated loan is facing uncertainty following the do...

MUMBAI, May 23: Power Finance Corporation’s (PFC) plan to launch a 100 million dollar syndicated loan is facing uncertainty following the downgrading of India’s foreign currency rating outlook by Standard & Poor’s.

The loan issue was facing problems after the economic sanctions imposed against it by come countries. However, the company decided to go ahead with the proposal. “I expect a rise of 50-100 basis points in the coupon rate of the issue after the S&P rating,” said an official of a bank.

PFC had earlier planned to offer a coupon rate of 115 basis points above the LIBOR (London Inter-Bank Offered Rate). “If the company wants to change the coupon, they will have to get take fresh permission from the Indian government, but it may not be a problem,” said a banking source.

“We’ll get a clear idea about the stand of overseas lenders only by Monday,” the bank official said. ANZ Investment Bank is the lead arranger for the issue which commenced on May 8. Apart from ANZ, the arranging group willinclude Fuji Bank, Skandinaviska Enskilda Banken and Arab Banking Corporation. Bank of India was also roped in as underwriter.

Hamas under pressure to respond to Gaza peace plan as Trump says will give ‘three or four days’

Trump gives Hamas 3-4 days to accept Gaza peace plan, with a warning

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US President Donald Trump has given a tight deadline to Hamas for accepting his Gaza peace plan, warning of a “sad end” if if they refuse to accept the conditions. Palestinian militant group Hamas is yet undecided on whether to accept the peace deal proposed by US President Donald Trump on Monday.

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