PFC to raise USD 1 billion in overseas debt

State-run Power Finance Corporation (PFC) will be hitting the overseas debt market with a USD 1-billion medium term note programme shortly.
International rating agency Fitch has assigned a BBB- negative rating to the issue.
The programme is rated in line with PFC's long-term issuer default rating as issues under the programme will constitute direct, unconditional, unsubordinated and unsecured obligations of the company, Fitch said in a note.
The proceeds from the MTN programme will be used for general corporate purposes of the company, Fitch said in a note today.
PFC is the largest lender to the power sector, with around 20 per cent market share. It is the largest NBFC operating based on networth and the fifth-highest profit making among the 298 central PSUs.

PFC has a borrowing plan of over Rs 70,000 crore which includes green and masala bonds. Its annual loan sanction rose by 55 per cent to Rs 1,00,603 crore in 2016-17 from Rs 65,042 crore in the previous fiscal. The data is not available for Fiscal 18.