PFC gets shareholders' nod for raising up to Rs 44,000 cr

Company has also been authorised to mortgage or create charge on assets of the company for securing loan

State-owned Power Finance Corp has received shareholders' approval for raising up to Rs 44,000 crore through issue of securities in the current financial year.

PFC is a leading lender to the power sector.

Shareholders have voted in favour of the fund raising plan along with proposal to enhance the borrowing power of the company, according to a regulatory filing made by PFC today.

Through a postal ballot, shareholders have also authorised PFC's board to mortgage or create charge on assets of the company for securing loan.

The company had sought approval to raise funds through private placement of non-convertible debentures to the extent of Rs 44,000 crore in the financial year ending March 31, 2015, as per the postal ballot notice dated May 2.

Another proposal, that has been cleared, is increasing the limit for raising funds in Indian rupees to Rs 4,00,000 crore from the existing level of Rs 2,00,000 crore, and in any foreign currency equivalent to $8 billion from the present level of $4 billion.

It was also proposed to allow the board of directors to "mortgage/create charges on movable and/or immovable properties of the company both present and future for securing loan up to Rs 4,00,000 crore in Indian rupees and $8 billion or equivalent in any foreign currency for the purpose of the business of the company".

This was also approved by the shareholders.

PFC, an infrastructure finance company, is engaged in providing financial assistance to state power utilities for meeting financing and development requirements of the power sector.