PFC plans to tap overseas market
Power Finance Corp Ltd (PFC) plans to tap the overseas debt market. PFC, one of the largest lenders in the Indian power sector, plans to raise $250 million through external commercial borrowings (ECBs). It will hold road shows for the same. PFC raised $500 million through ECBs in 2012-13 through syndicated loans. According to PFC, it enters into hedging transactions to cover exchange rate and interest rate risk through various instruments like currency forward, option, principal swap, interest rate swap and forward rate agreements. On 31 March, 2013, PFC´s total foreign currency liabilities were $1,040.30 million.