PFC to go ahead with $ 100 m loan

Asked if PFC was deferring its proposed loan, general manager corporate planning, Rajib Ranjan said "PFC will not be affected in any way by the sanctions and will go ahead with its programme of mobilising funds."

PFC is contemplating mobilising a massive Rs 1850 crore from the market including about Rs 900 crore from international money market to part-finance its Rs 2500 crore disbursal programme during the current financial year.

ANZ investment bank are the lead arrangers for theissue, which was commenced on May 8, director finance and financial operations of PFC T N Thakur said and expressed confidence that the issue would be successful, as the response from the roadshows were excellent.

The roadshows commenced in Mumbai followed by Bahrain, Singapore and London.

Thakur said that large number of banks had expressed satisfaction over the pricing level and were in the advanced stage of obtaining their internal approvals for participating in the deal.

Formally announcing the launch of its general syndication facility in London, ANZ Investment Bank disclosed that the arranging group will include Fuji Bank Limited, Skandinaviska Enskilda Banken and Arab Banking Corporation.

The deal has a seven year maturity with a lender put option at the end of five years and the margin has been set up at 115 basis points over Libor. The entry of Fuji Bank in the team of co-arrangers marks a significant success for PFC given the backdrop of sanctions imposed by Japan on India. This movereflects the continuing commercial interest of Japanese banks in the country.

ANZ Investment Bank is the investment banking arm of the Australia and New Zealand Banking Group Limited. Since 1990, ANZ has arranged syndicated loans to the tune of $ 6.8 billion for India.