PFS, Sundaram BNP Paribas Home Finance to raise over Rs 450 crore from IFC

IFC will subscribe to NCDs issued by the two companies

PTC India Financial Services (PFS)and Sundaram BNP Paribas Home Finance Limited (SHF) are going to raise over Rs 450 crore from the World Bank investment arm International Finance Corporation (IFC).

The IFC said, it would subscribe to listed, redeemable, secured 10-year non-convertible debentures of up to $35 million to be issued by PFS under the foreign institutional investor (FII) route.

PFS is categorised as an infrastructure finance company by the Reserve Bank of India. It is focused on funding projects in the energy value chain in India.

Subscription of non-convertible debentures to be issued by PFS would allow it to utilise these funds to increase investments in renewable energy, including solar and wind projects, said IFC.

PFS is the largest power trading company in India. As of September 30, 2014, PTC (formerly Power Trading Corporation India Ltd) holds a 60 per cent equity stake in PFS, while other shareholders include Macquarie Bank Limited (5.7%), Life Insurance Corporation of India (2.7%), Bajaj Allianz Life Insurance Company (1.97%), individuals/non-resident Indians (22%) and others (7.63%).

Meanwhile, Sundaram BNP Paribas Home Finance (SHF) is proposing to raise up to Rs 240 crore from IFC, through subscription of its senior secured non-convertible debentures.

“IFC’s proposed investment will support the company to increase penetration in financing affordable housing in existing states of operation as well as the low-income states that are being targeted for expansion,” said IFC.

SHF is planning to expand its operations into Rajasthan, Madhya Pradesh, Odisha and West Bengal, and further deepen its rural presence and increasing penetration in the affordable housing segment.

Headquartered in Chennai, SHF has a strong distribution network of 104 branches in 10 states, with focus on Tamil Nadu, AP, Karnataka and Kerala. It has expansion plans in tier II and III cities of India.