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PFC Enters Bond Market to Raise Rs 150 Crore

  • Power Finance Corporation has entered the capital market on Friday to raise Rs 150 crore in unsecured non-convertible debentures with right to retain oversubscription. The state-run lender has fixed coupon in the range between 9.26% and 9.51% for varying maturities.The bond sales will remain open till February 28, PFC said in a term sheet circulated among prospective investors.
  • It fixed the coupon at 9.51% a year for NCDs maturing after 3 years and 40 days while the longest maturity 11 years and 40 days carries 9.26% rate, in step with the market which is showing an inverse interest rate curve. Likewise, the coupons are 9.33% for 5 years and 40 days and 9.30% for 8 years and 40 days.There is no call or put option available with the issue, which is rated as most secured by rating agencies Crisil and Icra. The bonds will be listed on the wholesale debt market of the National Stock Exchange.PFC has kept Rs 1 crore as minimum subscription. PNB Investment Service is the trustee for the issue while IndusInd Bank is the collecting banker.

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