PFC floats Capital Advisory Services arm for loan syndication

NEW DELHI: State-run Power Finance Corp has incorporated a new subsidiary -- PFC Capital Advisory Services -- which would primarily provide loan syndication for power projects. PFC Capital Advisory Services was incorporated as a wholly-owned subsidiary on July 18.

In a regulatory filing, PFC said the subsidiary would "syndicate and make financial arrangements for the projects/enterprises in the areas of power, energy, infrastructure and other industries".

A PFC official said the business plans for the new subsidiary are yet to be finalised and things would be clear in the coming weeks.

In the beginning, PFC Capital Advisory Services would focus on power sector, the official added.

PFC is a key lender for India's fast-growing power sector, which is expected to see investments worth USD 300 to 400 billion in the 12th five-year plan (2012-17).

The company disbursed loans to the tune of Rs 25,808 crore in 2009-10, according to its website.

Shares of the company closed at Rs 209.10 apiece on the Bombay Stock Exchange.