Power Finance Corporation’s $750-million bonds gets over-subscribed

Leading lender for the power sector, Power Finance Corporation Ltd (PFC), concluded the issuance of bonds worth $750 million of tenure 10.25 years on Friday. The bonds have a fixed coupon of 3.95 per cent per annum and yield of 4.066 per cent.

With this bond issuance, PFC becomes the first Indian public sector company to issue senior unsecured US Dollar bonds with a tenure of more than 10 years, said the company in a public statement.

This is PFC’s third international bond issuance in FY19-20 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 US, European and Asian markets, with around 42 per cent participation from the US market,” said PFC in its statement.