PFC's Rs 5K cr bond issue for individual buyers opens today

Mumbai: Power Finance Corporation Limited, is one of the leading financial institutions in India, focused on the power sector will open its Rs 5,000 crores public issue of secured, redeemable Non- Convertible Debentures on January 15, 2021.

The base Issue size is Rs 500 crores with an option to retain oversubscription of up to Rs. 4,500 crores aggregating up to 5,000 crores which is within the shelf limit of Rs 10,000 crores.

The NCDs are of face value of Rs 1,000 each. The Tranche I Issue is scheduled to close on January 29, 2021 with an option of early closure or extension as decided by PFC's Board of Directors or a duly constituted committee thereof.

The 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 p.a to 4.80 per cent per annum, while the 5 year tenure NCD in Series II will offer fixedcoupon 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 centper annum to 7.00 per cent per annum

The floating coupon rate, on the other hand, is based on Benchmark FIMMDA 10Yr 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 minimum application size is for 10 NCDs aggregating to Rs. 10,000 collectively across all series of NCDs and in multiples of One (1) NCD of face value of Rs. 1000 each thereafter.

The NCDs offered through the Shelf Prospectus and the Tranche I Prospectus both dated January 11, 2021 are proposed to be listed on BSE Limited. The Lead Managers to the Issue are Trust Investment Advisors Private Limited, A. K. Capital Services Limited, Edelweiss Financial Services Limited and JM Financial Limited.

The NCDs proposed to be issued under the Issue have been rated 'CARE AAA; Stable' by CARE Ratings Ltd, 'CRISIL AAA / Stable' by CRISIL Ltd ("CRISIL"); and '[ICRA]AAA(Stable)' by ICRA Ltd. NCDs with these ratings are considered to have the highest degree of safety regarding timely servicing of financial obligations and

such instruments carry lowest credit risk.