RBI gives Infrastructure Finance Company status to PTC India Financial Services Limited (PFS) a subsidiary of PTC

• Security Code: 532524
• Company: PTC

PTC India Ltd has informed BSE regarding a Press Release titled "RBI gives Infrastructure Finance Company status to PTC India Financial Services Limited (PFS) a subsidiary of PTC"

Press Release:

"PTC India Financial Services Ltd. (PFS) has been given Infrastructure Financial Company (IFC) status by the Reserve Bank of India (RBI). PFS, a strategically important non-deposit taking NBFC, has now been classified by RBI as Infrastructure Finance Company - a new category of NBFCs announced by RBI in February, 2010. Infrastructure Finance Companies are allowed to have higher exposure for lending and investment to a single borrower or a group of borrowers. Such companies can also now raise ECB up to 50% of their net worth through automatic route and raise funds through tax-free infrastructure bonds. Banks have been allowed lesser risk weightage on lending made to infrastructure finance companies, Grant of Infrastructure Company status would reduce cost of borrowings for PFS to a considerable extent.

PFS has been a fast growing financing institution set up as an investment arm of PTC India Limited. PTC currently holds 77.2% equity in PFS. The remaining is held by GS Strategic Investment Limited (GS) and Macquarie India Holdings Limited (MQ) in equal proportion. In a short period of its existence, it has sanctioned debt and equity assistance aggregating to about Rs.3000 crores to more than 40 projects in the power sector. These include coal-based as well as renewable based power projects in different parts of the country, supporting capacity addition of more than 8000 MW. PFS is also pioneer in providing upfront financing against Carbon Emission Rights (CER).

Very few other institutions to get this status so far include IDFC and PFC."