PFC to raise Rs 100 billion through bonds issue

Power Finance Corporation Limited (PFC) will raise Rs 100 billion through a bonds issue in two tranches. The first tranche of Rs 50 billion will open for subscription on January 15, 2021 and close on January 29, 2021. …

This issuance would be PFC’s maiden taxable issuance to individual buyers. Of the total, 75 per cent of the proceeds would go towards onward lending and financing/refinancing of existing debt. The issue is open for four categories of investors – institutional, non-institutional, high net worth individuals, and retail individual investors. Further, the interest rate for institutional and non-institutional investors will be 4.65 per cent, 5.65 per cent, and 6.78-6.95 per cent respectively for bonds of 3, 5, and 15-year tenure. The 10 year bond for these set of investors will fetch 6.53 to 6.80 per cent interest. The interest for high net worth individuals and retail investors would be 4.80 per cent, 5.80 per cent, and 6.97-7.15 per cent for bonds of 3, 5, and 15-year tenure. The 10-year bonds for this set of investors will fetch 6.78 to 7 per cent interest

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