Power Finance Corporation raises $750 million through overseas bonds

Power Finance Corporation (PFC) concluded the issuance of bonds worth $750 million of tenor 10.25 years on Friday.

The bonds have a fixed coupon of 3.95 per cent per annum and an yield of 4.066 per cent.

With this bonds issue, PFC becomes the first Indian public sector firm to issue senior unsecured dollar bonds with a tenor of more than 10 years, said the company in a public statement.

This is PFC’s third international bond issuance in FY20 as well as the largest bond in a single tranche. The final order book amounted to more than $2.2 billion, said the company. “The bond issuance attracted active and wider participation from investors across the US, European and Asian markets, with around 42 per cent participation from the US market,” said PFC in its statement.