Power Finance Corporation (PFC) may decide on its overseas fund-raising plan early next month. The leading power sector lender that has plans to raise $1 billion via medium-term notes (MTN) is expecting its arrangers to come up with suggestions for the issue.
“We have maintained our target to raise $1 billion this year through MTNs. Our bankers are wrapping up. They will get back to us in the first week of November,” Satnam Singh, chairman and managing director of the government-controlled non-banking financial company, told Business Standard. “We will then take a call.”
Despite the volatile market conditions, the company has maintained its fund raising targets. Also, the dollar crunch has not stopped it from deciding to stay put with the traditional currency for fund raising. “We will be raising the funds in dollars,” Singh said.
Keeping the current market scenario in mind, a lot of banks and infrastructure companies like Union Bank of India, IDBI Bank and Rural Electrification Corporation have deferred their fund-raising plans on account of unattractive yields. Also, many are also looking at alternate currencies like Swiss Franc, Yen and Chinese Yuan.
Also, PFC has been able to garner Rs 20 crore via its tax-saving bonds. “We have got Rs 20 crore through the issue of tax-saving bonds in the first tranche. We are looking to raise Rs 200 crore by the end of the issue,” Singh said.
The lender has a plan to raise Rs 6,900 crore by this fiscal through the tax-saving bonds.
On meeting the targets for the year, Singh said, “Mid-year, the response might not be great, but the response will pick up by year-end for these tax-saving infrastructure bonds.”