PTC India Financial Services (PFS)

PTC India Financial Services Ltd (PFS) is promoted by PTC India Ltd (PTC) as a special purpose investment vehicle to provide total financial services to the entities in energy value chain, which inter-alia includes investing in equity and/or extending debt to power projects in generation, transmission, distribution; fuel sources, fuel related infrastructure like gas pipelines, LNG terminals, ports, equipment manufacturers and EPC contractors etc.

PFS also provides non-fund based financial services adding value to green field and brown field projects at various stages of growth and development.

EQUITY INVESTMENTS

The focus of equity investment is for projects in brownfield as well as green field, backed by promoters with proven track record, good growth prospects and clearly defined exit routes. Our investment horizon tends to focus on the short to medium term. We also provide the last mile equity to power projects as and when required depending upon the project viability, its progress and our investment guidelines.

Investment decision depends upon the valuation offered by the project. For the purpose PFS undertakes requisite due-diligence and assessment of the techno-economic viability of the proposal. PFS sees value in small and upcoming developers with promise and viable project and help them by sharing risk and adding credibility by participation in equity.

PFS does not merely provide equity but also add value to the project through PTC brand and by sharing experience of PFS team in structuring the transaction. PFS closely associates with the investee project to help them to achieve the project development and financial closure in best possible way.

The nature and the extent of participation in equity may vary from project to project. PFS would not normally take stake below 10% in equity of any project. The participation in equity can also be structured in the form of joint venture with PFS taking the role of a strategic investor or a financial partner. Equity participation in a holding company set up for promoting joint venture in the form of subsidiary or a associate for developing a number of projects; for example- in biomass or wind farm energy can also be considered.

LENDING

PFS offers debt assistance to projects subject to exposure limits stated earlier. PFS structure the debt assistance taking into consideration factors like needs of the borrowing entity, the market conditions, regulatory requirements, risks and rewards from the projects. PFS offers the following debt instruments:

– Term Loans
– Bridge Loans
– Supplier’s Credit
– Bill Discounting

PFS also considers mezzanine funding debt against promoter’s contribution in equity or in any other form depending upon the requirements of the project

PFS provides debt assistance to projects in the entire energy value chain i.e. power projects, fuel sources, related infrastructure like gas pipelines, LNG terminals, ports, equipment manufacturers like transformers, conductors, insulators, cables etc; which are technically and economically viable

PFS extends finance assistance to all kinds of borrowing entities in the public as well as private sector in the entire energy value chain. However, the priority of PFS would be private sector, followed by Joint sector/ Government sector projects.

The interest rate to be charged by PFS shall take into account the cost of funds of PFS, rates being charged by other institutions/bank, and condition of the financial market While providing for a reasonable margin, PFS may provide for charging differential interest rate form the borrowers depending upon the type of project, and grading based on the entity appraisal.

FEE-BASED SERVICES

PFS aspires to leverage its wide experience base in executing small & large offerings and the capacity to play the role of an advisor and arranger for power projects. With a core team of in-house power sector professionals, PFS strives to help its clients to become more competitive, effective and successful. PFS expects to build a formidable presence in the area of Finance Advisory and Funds Syndication in coming future.

PFS’s through Corporate Advisory would like to focus on the Corporate Sector in enhancing competitiveness of the client organization across different constituents of its value chain.

PFS likes to provide its experience in Project Advisory Services including:
– Identification & evaluation of various sources of finance for green-field and expansion projects
– Financial modeling of energy infrastructure projects
– Risk Analysis & Allocation carrying out an analysis of the operational and financial parameters of the Company
– Advisory services on financial structuring, implementation and documentation aspects of green field projects.
– Arrangements of equity funding from strategic as well as financial investors for green field as well as expansion projects.
– Assistance in tariff filing to generating, transmission and distribution companies.