PFC to raise Rs 5,300 cr via infra bonds

State-run Power Finance Corporation Ltd plans to raise up to Rs 5,300 crore through the public issue ofinfrastructure bonds, each with a face value of Rs. 5,000, to finance infrastructure projects. The bondswill be offered in maturities of 10 years and 15 years with a buyback option after five and seven years

respectively and will fetch a fixed rate of interest up to 8.5 per cent on an annual or cumulative basis.The bond issue is under Sec 80CCF of the Income Tax Act, wherein an investor can get the benefit ofdeduction of up to Rs 20,000 on his taxable income for the financial year 2010-11.

The bonds will be listed on the Bombay Stock Exchange and the issue will start on February 24 and willclose on March 22 of this year.

In the recent past, three infrastructure finance companies viz L&T Infrastructure Finance, IndiaInfrastructure Finance Company and Infrastructure Development Finance Company have issuedsuch bonds and are estimated to have collected about Rs 12,900 crore from the issue of such bondscollectively. Power Finance Corporation Ltd recently also planned to raise up to $1 billion of external

commercial debt in the coming fiscal year.

On Monday the shares of Power Finance Corporation Ltd. closed at Rs. 240.50, down by 2.50 points orby 1.03%.

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Hotel Leelaventure to sell 14.9%, raise Rs 600 cr

The hotel giant is in talks with four equity players to sell 14.9% equity in the next 3-4 months in order to raise Rs. 600 crore after which promoters holding in the firm will come down to 50.5% from 55% at the moment.

Earlier this month, the company said that its board decided to offer 14.95% of its enhanced capital to prospective investors by issue of fresh equity shares.It is also expecting to raise about Rs 950 crore from sale of office commercial space and joint development of land owned by the firm to reduce the company's debt.It has decided to sell a major portion of the commercial office space in Chennai and to enter into joint development agreements with reputed builders on company-owned land in Hyderabad and Bangalore for residential or commercial development.Commenting on future expansion plans, Nair said: "We have land in Agra and Kerala, which we will develop later."

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