(ET)
Power Finance Corporation (PFC) is in discussions with bankers to raise up to $750 million through an overseas bond issue though it is yet to decide on the timing of the fund raise, according to sources aware of the matter. “We are in discussions with our arrangers,” Naveen Bhushan Gupta, director — finance of the state-owned company said. “We have not decided when to launch the issue or the size. Whenever we feel is the appropriate time, we will launch the issue.”
The bond issue being planned would be the first overseas issuance this fiscal year by India’s largest lender to the power sector. PFC had raised over $2 billion through similar overseas offerings in the previous fiscal year. Its last offering of $750 million was in January and attracted bids for four times the bonds on offer.
Citi, Standard Chartered and Barclays were among arrangers for the previous issue. PFC could raise 90,000 crore or close to $12 billion at current exchange rates for onward lending to power sector institutions in the current financial year from a combination of domestic and international sources, as per estimates of ratings agency Fitch.
