PFC chairman and managing director AA Khan told FE that PFC has raised ECB of 12 billion yen through syndicated loan facilities. The SBI was mandated as lead manager for the above facilities and the roadshows for it were held at Dubai, Singapore and Tokyo in November. According to Mr Khan, PFC has successfully raised funds at a very competitive pricing. He however, declined to divulge details with regard to the pricing. As per the agreement, PFC can use the funds within 60 days from the date of signing up the deal and the proceed of the facility shall be utilised for funding power projects, he said.
Mr Khan said that the facility would be in place for a five-year period and the repayment was scheduled for after five years.
The PFC director (finance) R Krishnamoorthy said that PFC was one of the institutions tapping domestic and international markets for its fund requirements. Earlier also, it had raised syndicated loans, floating rate notes and Euro notes at a competitive price from the international markets. According to Mr Krishnamoorthy, PFC was in the process of seeking a loan of $150 million from the Asian Development Bank. Further, it was planning a second-line of credit from KFW, Germany for 150 million euro. In addition to this, PFC was also exploring the possibility of seeking a line of credit from JBIC.
Mr Krishnamoorthy said that the PFC has set its sanction target of Rs 7,000 crore and nearly Rs 5,200 crore for disbursement for 2002-03. PFC sources, it has recently scaled down its interests by 50 basis points and now it ranges between 9.5 per cent and 11.75 per cent.