"We expect to have successfully completed the target of 100 million dollars through the ECB, which closed in London yesterday. We had commitments of 92 million dollar till Friday morning with more offers flowing in," PFC's finance director Tantra Narayan Thakur told PTI when contacted.

"We are awaiting the final figures from our lead managers, anz investment bank," he added. At least six banks including State Bank of India (SBI) picked up a total of 75 million dollars, corporation sources said.

PFC is the first Indian entity after the nuclear test to have tapped the ECB route and its 100 million dollars issue is the first major issue from the country after the South Asian currency crisis of September 1997. Asked about the impact of the economic sanctions on the ECB, Thakur admitted that though it didnot have a direct bearing, the general atmosphere appeared to have been dampened. "We could have had better response otherwise," he added.

Out of the six banks, ANZ Investment Bank, lead managers for the issue, has taken 10 million dollars into its books, while State Bank of India has taken a substantial amount of 20 million dollars, banking sources said.

Lead managers, ANZ Investment Bank had to face a few hiccups in closing the loan, investment bankers said. Despite a strong arranging group, consisting of Fuji Bank, Skandinaviska Enskilda Banken, Arab Banking Corporation and Bank of India, investor interest was rather weak initially for the loan, which was structured and priced before the Pokharan blasts. State Bank of India's entry as joint arranger to the loan helped close the deal successfully. PFC's $100 million loan is the second one raised this calendar year and follows a $50 million one in January. Still earlier in July 1997, the corporation had raised $100 million through a 12-year Eurobondissue rated Baaa3 by Moody's and priced at 135 basis points above the 10-year US Treasuries.

PFC's other major foreign currency borrowings are a $265 million loan from World Bank for power utilities' efficiency improvement programme and a $250 million loan from the Asian Development Bank.