PFC, NTPC stake sales hit borrowing clause hurdle3 min read . Updated: 30 Dec 2019, 11:17 PM IST
- Bond covenant requires that firms be majority-owned by the government
- Reducing the government’s stake to below 50% will increase the cost of selling bonds for these companies
New Delhi: The government is facing hurdles in trimming its stakes in Power Finance Corp. Ltd (PFC) and NTPC Ltd, as the companies may breach a bond covenant that requires the companies to be majority-owned by the government.
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