Power Finance Corp

8/10/2019 Power Finance Corp

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Power Finance Corp.

Power Finance Corporation Ltd.(NSE:PFC,BSE:532810)is anIndianfinancial institution.

Established in 1986, it is the financial back bone ofIndian Power Sector.Net worth of the company

in the year 2007-2008 was 8688 Crore Indian Rupees.[1]Initially wholly owned by the Govt. of India,

the company issued an IPO in January, 2007. The issue was oversubscribed by over 76 times,

which is the largest for an IPO of any Indian Company in recent times.[2]PFC is listed on theBombay

Stock Exchange(BSE) and theNational Stock Exchange(NSE). The company has been conferred

with many prestigious awards, the latest of which is "KPMG-Infrastructure Today Award 2008" for its

contribution in development of power sector. It is also anISO 9001:2000certified company[3]and

enjoys the status ofNavratna Companyin India.

Contents

[hide]

1 Organization Structure 2 Borrowings

3 Operations

4 Subsidiary Companies

5 Awards & recognitions

6 Notes

7 External links

Organization Structure[edit]

The Corporation is headed by the Chairman and Managing Director; who at present is Sh. M K

Goel.[4]

The company has three wings, each headed by a Functional Director namely, CommercialDivision, Projects Division and Finance & Financial Operations division. The Commercial Division

looks after the credit appraisal and categorization of borrower entities, power sector reforms, review

& analysis. The Projects Division controls the operation in various states and project appraisal.

Finance & Financial Operations Division looks after the Fund Mobilization and Disbursement. PFC is

a lean organization. The number of employees during year 2013-2014 were 440.

Borrowings[edit]

The major part of PFC's funds are raised through Rupee denominated bonds. PFC bonds enjoy the

highest credit rating in the Indian market and in international markets, they are rated at par with theIndian Sovereign rating. It also borrows short term and long term from various banks and other

Financial Institutions. It has also raisedExternal Commercial Borrowings(ECB) through private

placement in US market.

Operations[edit]
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Since its inception, PFC has been providing financial assistance to power projects across India

including generation, transmission, distribution and RM&U projects. Recently, it has forayed into

financing of other infrastructure projects which have backward linkages to the power sector like coal

mine development, fuel transportation, oil & gas pipelines etc. The borrower profile includes State

Electricity Boards, State sector power utilities, Central sector power utilities and Private sectorcompanies. PFC is also the nodal agency for the implementation of the ambitiousUltra Mega Power

Plants(UMPPs) and theR-APDRPprogramme[5][6]of Govt. of India. The company also has the

mechanism of rating different state Power Utilities on its performance.

Subsidiary Companies[edit]

PFC presently has nine subsidiary companies. PFC Consulting Ltd. (PFCCL) is a wholly owned

subsidiary handling fee based services. The six other companies, namely Coastal Karnataka Power

Limited, Coastal Tamil Nadu Power Limited, Coastal Maharashtra Power Limited, Orissa Integrated

Power Limited, Jharkhand Integrated Power Limited and Akaltara Power Limited, are SPVs (ShellCompanies) created for implementing the Ultra Mega Power Projects.

Financial Policies/Products

1. Fund Based

o Asset acquisition

o Bridge Loan

o Buyer's Line of Credit

o Corporate Loan

o Credit Facility for Purchase of Power through Power Exchange

o Debt Refinancing

o Direct Discounting of Bills - For Buyers

o Direct Discounting of Bills - For Sellers

o Energy Saving Projects

o Financing of Fuel Supply Projects and Equipment Manufacturers

o Grants/Interest Free Loans for Studies/Consultancies

o Lease Financing for Purchase of Equipments

o Lease Financing for Wind Power Projects

o Line of Credit for Import of Coal

o Project Term Loans (Rupee and Foreign Currency)o Short Term Loan

o Short/Medium Term Loan to Equipment Manufacturers

o Short Term Loan for SPV in Government Sector

o Solar PV Policy to Power Generation Projects (Grid Connected)

o Solar PV Policy to Private Sector

o Rupee Short Term Loan (STL) to Gencos / Transcos against Identified Receivables from Discoms

o Policy for Investment in equity of Power Projects
http://en.wikipedia.org/wiki/Ultra_Mega_Power_Plants_(India)http://en.wikipedia.org/wiki/Ultra_Mega_Power_Plants_(India)http://en.wikipedia.org/wiki/Ultra_Mega_Power_Plants_(India)http://en.wikipedia.org/wiki/Ultra_Mega_Power_Plants_(India)http://www.pfc.gov.in/Content/R_APDRP.aspxhttp://www.pfc.gov.in/Content/R_APDRP.aspxhttp://www.pfc.gov.in/Content/R_APDRP.aspxhttp://en.wikipedia.org/wiki/Power_Finance_Corporation#cite_note-RAPDRP-H-01-5http://en.wikipedia.org/wiki/Power_Finance_Corporation#cite_note-RAPDRP-H-01-5http://en.wikipedia.org/w/index.php?title=Power_Finance_Corporation&action=edit&section=4http://en.wikipedia.org/w/index.php?title=Power_Finance_Corporation&action=edit&section=4http://en.wikipedia.org/w/index.php?title=Power_Finance_Corporation&action=edit&section=4http://www.pfcindia.com/writereaddata/userfiles/file/Financial/Asset%20Acquisition%20Scheme31_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Asset%20Acquisition%20Scheme31_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Bridge%20Loan%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Bridge%20Loan%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/For%20PFC%20website-Policy%20on%20Buyer's%20Line%20of%20Credit%202014-11-11.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/For%20PFC%20website-Policy%20on%20Buyer's%20Line%20of%20Credit%202014-11-11.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Corporate%20Loan%20Policy.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Fund/Scheme%20for%20Credit%20Facility%20for%20Purchase%20of%20Power%20Through%20Power%20Exchange.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Fund/Scheme%20for%20Credit%20Facility%20for%20Purchase%20of%20Power%20Through%20Power%20Exchange.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Debt%20Refinancing%20Policy%20(upto%2010_09_2011)%201.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Debt%20Refinancing%20Policy%20(upto%2010_09_2011)%201.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/DDB(Buyers)%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/DDB(Buyers)%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/DDB(Sellers_)%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/DDB(Sellers_)%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Energy%20Saving%20Projects%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Energy%20Saving%20Projects%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/FSD&D,EM%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/FSD&D,EM%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Services/Grants%20for%20Studies_CONSULTANCIES.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Services/Grants%20for%20Studies_CONSULTANCIES.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Lease%20Finance%20Scheme%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Lease%20Finance%20Scheme%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Lease%20Finance%20Scheme%20for%20WPP%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Lease%20Finance%20Scheme%20for%20WPP%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Line%20of%20Credit%20for%20Import%20of%20Coal%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Line%20of%20Credit%20for%20Import%20of%20Coal%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Project%20Term%20Loan%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Project%20Term%20Loan%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Services/Rupee%20Short%20Term%20Loan%20(STL).pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Services/Rupee%20Short%20Term%20Loan%20(STL).pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Equipment%20Mfturer%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Equipment%20Mfturer%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Short%20Term%20Loan%20for%20SPV%20in%20Government%20Sector%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Short%20Term%20Loan%20for%20SPV%20in%20Government%20Sector%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Solar%20PV%20Policy%20(for%20MNRE%20schemes)%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Financial/Solar%20PV%20Policy%20(for%20MNRE%20schemes)%2031_10_2011.pdfhttp://www.pfcindia.com/writereaddata/userfiles/file/Services/Policy%20Guidelines%20for%20Funding%20Grid%20Connected%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o Guidelines for funding Grid connected Solar Thermal Private Sector Power Generation Projects.

o Policy for Underwriting of Debt

o Refinancing of Debt of Commissioned Projects along with Additional Corporate Loan for New-Expansion-

Acquisition of projects

o Financial Assistance to Distribution Franchisees

2. Non-fund Based

o Guarantee

o Letter of Comfort

o Policy for Guarantee for Credit Enhancement

Services

Non-fund Based

Consultancy Services

Overview of Consultancy Services being provided by PFC Consulting Limited

Overview of Capital Advisory Services being provided by PFC CAS Limited

http://www.pfcindia.com/Content/Services.aspx

Performance Highlights

Your Company has delivered yet another year of significant achievements despite the tough environment. The netprofit for fiscal 2014 has gone up by 23% from Rs. 4,420 Crore to Rs. 5,418 Crore, driven by loan asset growth of18% from Rs. 1,60,396 Crore to Rs. 1,89,231 Crore and increased margins (interest spread) by 59 basis points from2.86% to 3.45%.

Given the sound profitability during fiscal 2014, your Company paid an interim dividend of 88%, which is almost 1.5times of last fiscal''s interim dividend. Further, an additional 2% dividend has been proposed as final dividend. YourCompany therefore proposed to pay the shareholders a 90% dividend for fiscal 2014.

Despite the volatile interest rates and forex markets during the fiscal, your Company managed to raise Rs. 45,220Crore keeping the cost of funds competitive at marginal cost of 8.96% (including Rs. 5,000 Crore Tax-free bonds).

Your Company was also able to maintain low NPAs despite the industry showing trends of rising NPAs, As on

31.03.2014, Gross NPAs have come down to 0.65% from 0.71% last fiscal & net NPAs have come down to 0.52%from 0,63% last fiscal.

Business growth didn''t suffer despite economy and power sector facing headwinds during fiscal 2014. YourCompany managed loan sanctions of Rs. 60,729 Crore against a target of Rs. 59,000 Crore and disbursed Rs.47,162 Crore against a target of Rs. 47,000 Crore for fiscal 2014. Further, we have outstanding loan sanctions ofMrs. 1.56 lakh crore (l.e more than 3 times the disbursements of fiscal 2014). This indicates the strong businesspipeline going forward.
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http://economictimes.indiatimes.com/power-finance-corporation-ltd/chairmanspeech/companyid-4519.cms

Power Finance Corporation Ltd. (PFC) - Company HistoryPowerFINANCE Corporation Ltd is a leading power sector public financial institution and a non-banking

financial company providing fund and non-fund based support for the development of the Indian powersector. The company is engaged in power sectorFINANCING ,and the integrated development of thepower and associated sectors. They provide large range of Financial Products and Services like Project

Term Loan, LeaseFINANCING ,Direct Discounting of Bills, Short Term Loan, and Consultancy Servicesetc for various Power projects in Generation, Transmission, and Distribution sector as well as forRenovation & Modernization of existing power projects.

The company's clients include state power utilities, central power sector utilities, power departments,private power sector utilities (including independent power producers), joint sector power utilities, powerequipment manufacturers and power utilities run by local municipalities. These clients are involved in allaspects of the generation, transmission and distribution and related activities in the power sector in India.

PowerFINANCE Corporation Ltd was incorporated on July 16, 1986 as a public limited company. TheGoI established the company as a financial institution in order toFINANCE ,facilitate and promote

power sector development in India with the President of India holding 100% of the equity share capital.In December 31, 1987, they commenced their business operations. In the year 1988, they started

lending activities. In the year 1990, the company was declared as a public financial institution.

In the year 1991, the company was conferred with a license to deal in foreign exchange in the power

sector. In the year 1992, Project on Energy Management Consultation and Training (EMCAT) becameoperational with the objective to bring about improvement in the efficiency of the energy supplycomponent of the power sector with the help of USAID. In the year 1996, the company started funding

private power projects.

In the year 1998, the company was granted the Mini Ratna (Category I) status. They promoted a joint
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venture company, namely PTC Ltd in association with NTPC and PGCIL. In the year 1999, the company

launched consultancy services in order to provide consultancy services to both state owned and privatepower utilities for the power and financial sectors.

In the year 2003, the company was appointed as a nodal agency by the MoP to fund the India PowerFund scheme to catalyze the process of fresh equity investment in the power sector. In the year 2005,

the company entered into MoU with LIC and ten leading public sector banks for consortium financing ofpower projects. In the year 2006, the company incorporated seven subsidiary companies for developingUMPPs. They issued the letter of intent for the Sasan and Mundra UMPPs. In the year 2007, theyincorporated their eighth subsidiary company for developing UMPP.

During the year 2006-07, the company launched their IPO and the holding of Government of Indiareduced from 100% to 89.78% of the paid-up equity. On successful completion of bidding process, twoof the subsidiaries, Coastal Gujarat Power Ltd and Sasan Power Ltd were to Tata Power Company Ltd andReliance Power Ltd on April 22, 2007 and August 7, 2007 respectively. The company was registered as aNon Banking Financial Company by RBI and was conferred with the status of Nav Ratna by the Govt ofIndia on June 22, 2007.

During the year 2007-08, the projects, namely Maneri Bhali U-1,3&4 (228 MW) of UTJVNL in Uttaranchal,

Balimela U-7 of OHPC in Orissa and Teesta V HEP U-2 (170 MW) of NHPC in Sikkim, which weresupported by the company were commissioned. The company sanctioned loans worth Rs.190 crore for R& M and Life Extension of thermal power plants. Also, they sanctioned Rs.222 crore for R&U of Hydro

Power Projects.

In March 2008, the company signed an MoU with RITES Ltd (A Govt. of India Enterprise) to facilitate

import of coal from African countries and elsewhere. Also, they signed an MoU with TNEB whereby PFCwouldFINANCE cogeneration projects of around 250 MW planned to be set up at a cost of Rs1200

crore in various cooperative and public sector sugar mills in the state of Tamil Nadu.

In March 25, 2008, the company launched a 100% owned subsidiary company, namely PFC Consulting

Ltd for providing consulting services. Also, they incorporated an advisory company namely Power EquityCapital Advisors Private Limited to provide advisory services related to equity investments in Indian powersector.

During the year 2008-09, the company established a Consortium Lending Group (CLG) with an aim to

give fillip to Consortium Lending Operations, particularly through the Power Lenders' Club (PLC) whichhas 21 members including LIC, HUDCO and 18 Indian banks. The projects in association with thecompany, namely Baglihar HEP (3x150 MW) of JKPDCL in Jammu and Kashmir, Priyadarshni Jurala HEP(6x39 MW) of APPGCL in Andhra Pradesh and Varahi HEP (2x115 MW) of KPCL in Karnataka werecommissioned.

During the year, the company sanctioned loans worth Rs.214 crore for R&M and life extension of thermalpower plants. Also, they sanctioned Rs.48 crore for R&M of hydro power projects. Chhattisgarh StateElectricity Board was reorganized / unbundled into Chhattisgarh State Power Holding Company Ltd.,

Chhattisgarh State Power Generation Company Ltd., Chhattisgarh State Power Transmission CompanyLtd., Chhattisgarh State Power Distribution Company Ltd. and Chhattisgarh State Power TradingCompany Ltd with effect from January 1, 2009. Also, the company in association with NTPC, NHPC andTCS promoted National Power Exchange Ltd with an authorized capital of Rs.50 crore.

The company was conferred with the coveted 'KPMG-Infrastructure Today Award 2008' for 'Most AdmiredGovernment Enabler - Power' category. They also bagged Dalal Street's 'First DSIJ Award 2009' in the

category of 'Highest Profit Per Employee' and 'India Power Award 2008' for PFC's role and association asimplementation agency with 'Distribution Reforms, Upgrades & Management' (DRUM) Programme of
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Government of India (GoI).

During the year 2009-10, the company sanctioned loans worth Rs 1,950 crore for R&M and life extension

of thermal power plants. Also, they sanctioned Rs 74 crore for R&M of hydro power projects. In August2009, Jharkhand Integrated Power Ltd. for Tilaiya UMPP in Jharkhand has also been transferred on 7thAugust, 2009 to Reliance Power Ltd. In November 2009, the company signed a joint venture agreement

with TPC Ltd., Power Grid Corporation of India Ltd. and Rural Electrification Corporation Ltd forincorporating a Joint Venture Company with equal equity contribution (i.e. 25% each) from all the 4CPSUs.

As on March 31, 2010, the company established twelve Special Purpose Vehicles for UMPPs to undertakepreliminary site investigation activities necessary for conducting the bidding process for these projects.Ministry of Power is the 'facilitator' for the development of these UMPPs while Central Electricity Authority(CEA) is the 'Technical Partner'. These SPVs shall be transferred to successful bidder(s) selected throughTariff Based International Competitive Bidding Process for implementation and operation.

During the year 2010-11, loans worth Rs 556 crore were sanctioned for R&M and life extension ofthermal power plants and an amount of Rs 562 crore was disbursed. Also, they disbursed Rs 83 crore forR&M of hydro power projects. In July 28, 2010, RBI classified the company as an Infrastructure Finance

Company (IFC).

In October 2010, the company signed an MoU with NPCIL, the only player in nuclear power generation in

India, for offering financial assistance to NPCIL for their new power projects as well as renovation,refurbishment arid life extension projects etc.

During the first quarter of financial year 2011-12, the company made a Further Public Offer (FPO) of22,95,53,340 equity shares of Rs 10 each. The issue included a fresh issue of 17,21,65,005 equity shares

by the Company and an offer for sale of 5,73,88,335 equity shares by the President of India actingthrough Ministry of Power, Government of India.

In March 30, 2011, the company incorporated a wholly-owned subsidiary company namely Power FinanceCorporation Green Energy Ltd to provide financial support for generating green (Renewable and Non-conventional sources of) energy. In July 18, 2011, they incorporated a wholly owned subsidiary, PFCCapital Advisory Services Ltd to syndicate and make financial arrangements for the Projects/ enterprises

in the areas of power, energy, infrastructure and other industries.http://www.business-standard.com/company/power-finance-corporation-ltd-12068/information/company-history

Rural Electrification Corporation Limited(REC) is a leading public Infrastructure Finance

Company in Indias power sector. The company finances and promotes rural electrification projects

across India, operating through a network of 13 Project Offices and 5 Zonal Offices, headquartered

in New Delhi. The company provides loans to Central/ State Sector Power Utilities, State Electricity

Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.

REC is aNavratna Company[2]functioning under the purview of the Ministry of PowerGovernment

of India. The company is listed on bothNational Stock Exchange of IndiaandBombay Stock

Exchange.
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The company is currently among the top 500 Global Financial Services brands by UK-based

plcBrand Finance(Brand Finance @ Global Banking 500 for 2010).[3]The company is also among

theForbes Global 2000companies for 2010.[4]

Contents

[hide]

1 Business Operations[5]o 1.1 Services Providedo 1.2 Projectso 1.3 Resource Mobilisationo 1.4 IPO & FPO

2 History[8]o 2.1 Time-lineo 2.2 Early yearso 2.3 Post-Liberalized India (1990s)o 2.4 2000Current

3 Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)o 3.1 Rural Electrification Status

4 Central Institute for Rural Electrification (CIRE)[16]

5 Subsidiaries

6 Energy Efficiency Services Limited (EESL)

7 Indian Energy Exchange (IEX)

8 Recent Awards

9 References

10 External links

Business Operations[5][edit]

ICICI Prudential Banking and Financial Services Fund - Retail

Type: Open Ended

Fund Manager:Venkatesh Sanjeevi
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8/10

Launch Date:August 22, 2008

Fund Size (in Crore): 209.2 as on November 30, 2012

MinimumINVESTMENT (in ): 5000

It is an Open-ended equity scheme that seeks to generate long-term capital appreciation

to unit holders from a portfolio that is invested predominantly in equity and equity

related securities of companies engaged in banking and financial services. However,

there can be no assurance that the investment objective of the Scheme will be realized.

The Net Asset Value (NAV) for the scheme is 22.52 as on December 21, 2012. The 52

week high value of the scheme is 22.86 as on December 19, 2012 and 52 week lowvalue was 13.24 as on Deccember 30, 2011.

Since its inception, the Risk Return Value (RRV) has been 20.60 percent and for the

month has been 7.75 percent. The Earnings Per Share (EPS) is 15.90 as on November

2012.

The top holdings are HDFC Bank, ICICI BANK, State Bank of India, IndusInd Bank,

Mahindra & Mahindra Financial Services, Union Bank Of India, Oriental Bank of

Commerce, Yes Bank, Federal Bank and ING Vysya Bank.

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9/10

RECs business model spans across the value chain of power infrastructure financing including

(a) equipment finance,

(b) technical/ financial appraisal of project,

(c) project finance as well as short term or bridge loans for generation, intensive electrification,

transmission, distribution, repair and maintenance,

(d) support functions like project monitoring, consultancy and advisory.

The company operates autonomously as a Central Public Sector Enterprise under the Ministry of

Power,[6]Government of India and also acts as nodal agency for expansive Government of India

schemes for building electricity infrastructure.

Business operations in India are supported by a network of 19 offices headquartered in New Delhi.

Services Provided[edit]

The company is primarily engaged in providing finance for rural electrification projects across India

and provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric

Cooperatives, NGOs and Private Power Developers. The company sanctions loan as a sole lender

or co-lender or in consortium with or without the status of lead financer. It also provides consultancy,

project monitoring and financial/ technical appraisal support for projects, also in the role of nodal

agency for Government of India schemes or projects.

Projects[edit]

REC finances all types of Power Generationprojects including Thermal, Hydel, Renewable Energy,

etc. without limit on size or location. The company aims to increase presence in emerging areas like
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de-centraliseddistributed generation(DDG) projects, and new and renewable energy sources to

reach remote and difficult terrains not connected by power grid network.

In Transmission & Distribution(T&D), REC is primarily engaged in ascertaining financial

requirements of power utilities in the country in the T&D sector along with appraising T&D schemes

for financing. REC has financed T&D schemes for system improvement, intensive electrification,

pump-set energisation and APDRP Programme. The company is also actively involved in physical

as well as financial monitoring of T&D schemes.

REC also offers loan products for financing Renewable Energyprojects. The company has tied up

a line of credit for 100M (approximately 6000M) withKfWunder Indo-German Development

Cooperation for financingrenewable energypower projects at concessional rates of interest. Eligible

projects include Solar, Wind, Small Hydro, Biomass Power, and Cogeneration Power & Hybrid

Projects.

Resource Mobilisation[edit]

REC raises funds through various domestic and international sources, including Commercial Banks,

Capital Gain Tax Exemption Bonds, Non-Priority Sector Bonds & Commercial Paper, and Official

Development Assistance loan from international agencies. International collaborations have included

past tie-ups for External Commercial Borrowings with Standard Chartered Bank (London), DEPFA

Investment Bank Limited (Cyprus)[7]etc. as well as current tie-ups withKfW(Germany) andJapan

International Cooperation Agency(Japan) under Official Development Assistance. As an IFC, REC

can also issue Infrastructure Bonds and raise funds up to US$500M through External Commercial

Borrowing in a year.

Domestic debt instruments of REC are assigned the highest rating "AAA" by reputed credit rating

agenciesCRISIL,FitchandICRA.MoodysandFitchhave rated its international credit rating at par

with Indias sovereign rating.

IPO & FPO[edit]

The Company was listed on theNational Stock Exchange of Indiaand theBombay Stock

Exchangeon 12 March 2008. REC went for Initial Public Offer of 156,120,000 Equity Shares in

February 2008 which was oversubscribed by about 27 times, raising a total amount of 819 crores.

Further Public Offer of 171,732,000 equity shares was made in February 2010. The issue was

oversubscribed by 3.14 times, raising a total of 26.47 billion
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Documents

Power Finance Corp