PFC to raise up to Rs 10,000 crore in two tranches via NCDs

Power Finance Corporation (PFC) is planning to raise up to Rs 10,000 crore in two tranches via secured, redeemable, non-convertible debentures (NCDs) to fund its general corporate and lending operations. The first tranche of Rs 5,000-crore NCDs will open for subscription on January 15 and close on January 29.

The tranche one issue will have a base size of Rs 500 crore with a greenshoe option to retain oversubscriptions of up to Rs 4500 crore. Bonds will have a tenure of 3, 5, 10 and 15 years with coupon rates ranging between 4.65% per annum for three-year bond and 7.15% for 15-year bond.

RS Dhillion, chairman of PFC, told reporters in a virtual conference call that NCDs being offered by PFC will provide an alternative for retail investors with better yield and varied tenure.