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PTC India arm, PTC India Financial Services Ltd, is looking to raise up to Rs 2,000 crore through a bonds issue, of which the first tranche of about Rs 600 crore will be issued later this month, a top company official said here.
The company's Managing Director and CEO, Pawan Singh, said the company is focusing on maintaining the growth momentum by keeping profitability with an improved interest margin spread in power infrastructure finance.
"We are planning to bring a bonds issue, which will be the first of its kind in the country. Currently, we are talking to investors. The first tranche will be of about Rs 600 crore under a 10-year bonds issue. This will be issued by the end of this month," said Singh.
The bonds by PTC India Financial are unique from any non-banking finance company (NBFC), as it is backed by bank credit from public sector lender, State Bank of India, worth Rs 2,000 crore. The company is also getting interest from other private sector banks to extend such facility.
The infrastructure funding player, PTC India Financial, has a total loan book of Rs 13,500 crore, with borrowings at around Rs 10,500 crore. The company is witnessing a portfolio shift from thermal to renewables. In fiscal 2011-12, credit to thermal power was 67 per cent of the overall credit, while the renewables share was 16 per cent. In the 2018-19 estimates, the share of thermal in overall credit is likely to be at 7 per cent, while that of renewables will be around 62 per cent.
"The segments of transmission, electric charging stations and infrastructure are also becoming a promising area for credit demand. The ‘others’ category has about 28 per cent share in the overall credit," said Singh.
Abhinav Goyal, the company's vice-president, said the rate for the bond will be decided by the market, while it expects it at around 9 per cent. The lead arrangers for the issue will be appointed soon.
Buoyed by robust demand from the renewable power segment and the other sectors in the power infrastructure space, PTC India Financial is looking at increasing its loan book to raise about Rs 20,000 crore by 2022.
On Friday, PTC India Financial Services shares gained over 5 per cent to close at Rs 17.25 on the Bombay Stock Exchange (BSE).
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