Power Finance Corporation Limited (PFC) has opened its Rs 50 billion public issue of secured, redeemable non-convertible debentures (NCDs) on January 15, 2021.
The base issue size is Rs 5 billion with an option to retain oversubscription of up to Rs 45 billion aggregating up to 50 billion which is within the shelf limit of Rs 100 billion. The NCDs are of face value of Rs 1,000 each. Tranche I issue offers options for tenures of 3, 5, 10 and 15 years. The 3-year tenure NCD in series I will offer a fixed coupon rate of 4.65 per cent per annum to 4.80 per cent per annum, while the 5 year tenure NCD in series II will offer fixed coupon rate of 5.65 per cent per annum to 5.80 per cent per annum depending on the category of investors. The 10-year tenure NCDs offers options of both fixed and floating rates of interest. The fixed coupon rate is 6.63 per cent per annum to 7.00 per cent per annum The floating coupon rate, on the other hand, is based on benchmark FIMMDA 10 year G-Sec (Annualised) + spread of 55 basis points to 80 basis points, subject to floor and cap rate depending on the category of investors. The 15-year tenure NCD offers a range of fixed coupon rates with maximum coupon rate of 7.15 per cent per annum. The tranche I Issue is scheduled to close on January 29, 2021 with an option of early closure or extension. The issue offers the option of applying through UPI mechanism to retail investors for an application amount of up to Rs 200,000.