Public sector lender Power Finance Corporation (PFC) will likely begin roadshows for its dollar bond sale next week. Adani Ports and Special Economic Zone (APSEZ) would price its bonds around the same time, according to sources.
PFC had, on Monday, said it has mandated Standard Chartered Bank, Barclays and SBICAPS (Singapore) for its dollar-denominated bond issue through which it aims to raise $1 billion. The public sector lender may initially launch a $500-million bond sale, but is likely to keep the option of accepting more if investor demand is strong. The lender will use proceeds of the bond sale to on-lend to the power sector, it said. Global rating agency Standard & Poor’s has given a BBB- rating for PFC’s proposed dollar bond issue.
PFC had borrowed Rs 3,000 crore through a domestic bond issue in May through two- and three-year bonds. The company is said to have raised more than Rs 11,000 crore through the bond markets in March, said sources.
Meanwhile, APSEZ will price its bond issue next week as roadshows are expected to conclude. “Adani Ports’ roadshows are on and the pricing would likely be early next week,” said a banker close to the development.
The company had said that the proceeds of the bonds, if and when issued, will be utilised for refinancing an existing forex loan and for capital expenditure.
Both companies were waiting for the US Federal Reserve’s statement on policy. The Fed on Wednesday said the US economy was strong enough to handle a rate hike in 2015, but lowered its growth projection for 2016 and 2017, indicating that it was not in a hurry to do so. Benchmark US treasury note yield eased 2 basis points to 2.30% on Thursday. This is likely to benefit bond issuers in terms of pricing, bankers said.