Amid liquidity squeeze, PFC to hike borrowings from foreign markets

Power Finance Corp. Ltd (PFC), the largest financier for the domestic power sector in India, is increasing its borrowings from the international market in 2019-20 to tide over a liquidity crunch in the country. Out of PFC’s fund-raising target of ₹80,000 crore for the current fiscal year, it will raise 10% in foreign current borrowings and increase its target to 15-20% over the next two years.

“We don’t foresee a problem in meeting our fund-raising target this year,” Rajeev Sharma, chairman and managing director, PFC, said in an interview. “Our focus is on diversification and we will increase the foreign currency borrowing to 10% this year. When I joined PFC in October 2016, foreign currency borrowing was only 2-3% of the target. This will increase to 15-20% in the next two years.”