PFC to launch `4,590 cr tax-free bond issue
13 Dec 2012 4:04 PM IST
State-run lending agency Power Finance Corporation on Wednesday said it will launch tax free bond issue to garner up to Rs Rs 4,590 crore from Friday. 'The tax free bond issue to raise close to Rs 4,590 crore would open on 14 December and close on 21 December,' PFC chairman and managing director Satnam Singh told reporters here.
The tranche 1 of the issue is likely to raise up to Rs 1,000 crore with an option to retain oversubsription up to shelf limit of Rs 4,590 crore, he said.
The bond issue would be for a period of 10-15 years offering an interest rate between 7.19 per cent and 7.86 per cent. The bonds are proposed to be listed on the BSE.
Tax free bonds would be raised through the Non-convertible debenture (NCD) route.
An NCD is a type of loan-linked security issued by a company that cannot be converted into stock and usually carries a higher interest rate than a convertible debenture.
The funds would be utilised towards lending purposes, debt servicing and working capital requirements. PFC is engaged in financing power generation and transmission projects.
ICICI Securities Ltd, AK Capital Services Ltd, Enam Securities, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are acting as lead managers to the issue.
The tranche 1 of the issue is likely to raise up to Rs 1,000 crore with an option to retain oversubsription up to shelf limit of Rs 4,590 crore, he said.
The bond issue would be for a period of 10-15 years offering an interest rate between 7.19 per cent and 7.86 per cent. The bonds are proposed to be listed on the BSE.
Tax free bonds would be raised through the Non-convertible debenture (NCD) route.
An NCD is a type of loan-linked security issued by a company that cannot be converted into stock and usually carries a higher interest rate than a convertible debenture.
The funds would be utilised towards lending purposes, debt servicing and working capital requirements. PFC is engaged in financing power generation and transmission projects.
ICICI Securities Ltd, AK Capital Services Ltd, Enam Securities, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are acting as lead managers to the issue.
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