Reportedly, Power Finance Corporation Limited (PFC) has withdrawn its proposed issuance of zero-coupon bonds due to weak investor demand and expectations of higher yields.
PFC had planned to raise up to Rs 20 billion through the issuance, a base size of Rs 5 billion and a green shoe option of Rs 15 billion. The issue received bids worth Rs 14.7 billion across 28 applications, with yields ranging between 6.20 per cent and 7.02 per cent. However, the issue was shelved after PFC declined to accept the higher yield expectations. This marks the second instance of withdrawal by PFC in the current quarter.