The all-in cost for PFC's transaction will approximately be 163 basis points over Libor. Roadshows were held in Mumbai, Singapore, Dubai, London and three other European cities, and joining lead arranger ABN Amro Bank were Bank of Baroda, Natexis Banque, Bank of India and Rabobank.

Power Finance Corporation's FRN issue was launched on June 28, 1999 and the target date for closure is July 9, 1999."The funds will be utilised towards providing loans to various power projects in India," PFC's chairman and managing director, Uddesh Kohli, said while adding that PFC aimed to disburse about Rs 3,000 crore out of which Rs 2,000 crore are to be raised through market borrowings". PFC had earlier tapped the capital marketsthrough a $100 million 144A issue in 1997 besides accessing the syndicated loan markets in 1997 for $75 million and $100 million in 1998.

"PFC does not want to confine itself to banks as investors. We are looking for a wide variety of investors from banks to institutional investors. PFC started with funding state electricity boards, but now it has been lending to all kinds of activities in the power sector both private and state", PFC's director (finance and financial operations), TN Thakur said.