PFC plans to raise Rs22,000 crore through bonds
19 Jul 2011
State-run Power Finance Corporation (PFC) has plans to raise Rs22,000 crore through issue of infrastructure and tax-free bonds, among others, during the current financial year.
Chairman and managing director Satnam Singh said the company's borrowing target for the current financial year was Rs30,000 crore, out of which it had already raised Rs3,400 crore from the follow-on offer, Rs3,000 crore via bonds and Rs1,000 crore from term loans.
The company has already received the government's approval for raising Rs5,000 crore through tax-free bonds and Rs7,000 crore through infrastructure bonds during 2011-12 and the remaining Rs11,000 crore would come though another bond issue or external commercial borrowings.
Meanwhile, PFC Consulting, the company's subsidiary was looking to expand its operation overseas by entering other Asian countries through joint ventures (JVs) with other consultancy firms. After the JVs, PFC may look at listing the consulting subsidiary, which is into offering consultancy services to the Indian power market.
The company may also invite bids for the second time for consultancy for its foray into the banking sector. It had received five bids - Icra, Crisil, Deloitte, PwC and KPMG for consultancy on the proposed banking foray in which only KPMG qualified.
According to Singh, the price they quoted was probably high, so the company would go for rebidding and would invite the bids again in a week or a fortnight.