According to reports, Power Finance Corporation Ltd (PFC) on Tuesday said it will raise $250 million through external commercial borrowing. PFC is also looking at expanding its portfolio by funding coal mining projects overseas.
“We are going for $250 million ECB. Road shows may be starting next month,” Mr Satnam Singh, Chairman and Managing Director of PFC, told newspersons.
Mr Singh added that PFC is exploring the possibility of funding coal mine and gas stations overseas wherein the output would be brought to India for the purpose of resolving fuel-related issues.
The company’s board has also approved forming a ‘power equity fund’ for buying equity in power projects.
Currently, PFC’s outstanding sanction stands at Rs 184,000 crore. “In fourth quarter after the RBI reduced interest rate by 50 basis points, our spread has gone up from 2.10 per cent to 2.33 per cent. Also, RBI has extended our exemption limit for credit concentration by another year. We are asked to submit revised roadmap till 2016,” Mr Singh said.
PFC said that its net interest margin in fourth quarter of 2011-12 improved to 3.88 per cent against 3.55 per cent in the corresponding quarter previous year. The company has reported 35 per cent rise in fourth quarter 2011-12 net profit at Rs 818 crore against Rs 608 crore in the same quarter last year. Net income in the quarter increased 40 per cent to Rs 3,684 crore (Rs 2,623 crore).