Mumbai : After going for green bonds and external commercial borrowings (ECB), the BSE-traded Power Finance Corporation (PFC) is now planning to go for masala bonds. The company will issue masala bonds soon, PFC’s boss Rajeev Sharma told the FPJ on Tuesday.
The state-run company has already raised USD 700 million via different instruments this year. Sharma CMD of the PFC added, “We are trying to diversify our borrowing portfolio and we have raised USD 300 million via ECB. Now, we are thinking about going for masala bonds.” Talking about the USD 400 million green bonds issued, Sharma stressed that it was a very competitive spread. Commenting about the masala bonds, he said, “This will happen very soon. We are exploring the possibility.” He added, “Masala bonds rate has come down in the market. So we are thinking of going ahead with that. We can expect it to happen this financial year.”
The company is looking at increasing their share in renewables. Talking about renewables, Sharma said PFC has witnessed a four-fold increase in sanction and disbursement compared to 2014. He reiterated, “The share has increased mainly because government’s emphasis is also on renewables. We have re-aligned our policies and guidelines with the market to increase our exposure into renewables.” As for the renewables space, the share of solar projects is more at present and is picking up way faster than wind and biomass. PFC has been funding biomass and wind power portfolios and is also re-financing some of the commissioned renewable projects. Furthermore, talking about the future, Sharma stated: “By 2022, our share in renewables will be more than 10%of our total loan assets books.” Power Finance is also looking at refinancing smart-grid projects, Sharma added.