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Business News/ Market / Stock-market-news/  PFC’s `100 cr tax-free bonds issue opens on Monday
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PFC’s `100 cr tax-free bonds issue opens on Monday

The proposed issue is part of firm’s plan to garner `5,000 crore by way of issuing tax-free securities this fiscal

The bond issue would be for a period of 10-15 years offering an interest rate between 6.88% and 7.54%. The bonds are proposed to be listed on the BSE. Photo: Mint (Mint)Premium
The bond issue would be for a period of 10-15 years offering an interest rate between 6.88% and 7.54%. The bonds are proposed to be listed on the BSE. Photo: Mint
(Mint)

New Delhi: State-run Power Finance Corp. (PFC) plans to raise 100 crore through tax-free bonds issue that begins on Monday.

The proposed issue is part of its plan to garner 5,000 crore by way of issuing tax-free securities in the current fiscal (2012-13). Out of the total target, 1,110 crore has already been raised.

“PFC to raise 100 crore through this issue with an option to retain over-subscription up to the residual shelf limit ( 3,890.25 crore) prior to March 31, 2013," according to information available with the market regulator Sebi.

“The company is also considering the raising of funds via private placements of the bonds in one or more tranches during the process of the present issue, within the residual shelf limit, at its discretion," it added.

The issue would open on 18 February and close on 15 March 2013. The funds would be utilized towards lending purposes, debt servicing and working capital requirements, PFC said.

The bond issue would be for a period of 10-15 years offering an interest rate between 6.88% and 7.54%. The bonds are proposed to be listed on the BSE.

PFC said ministry of finance has authorized it to raise the bonds aggregating to 5,000 crore in fiscal 2013, out of which it has raised an amount of 410 crore on a private placement basis.

Additionally, it also raised 699.75 crore in December. ICICI Securities Ltd, AK Capital Services Ltd, Axis Capital, Kotak Mahindra Capital Company Ltd, SBI Capital Markets Ltd are acting as lead managers to the issue.

PFC, which provides and arranges finance for the electrical power sector, posted a net profit of 1,117 crore for the third quarter of this fiscal, against 1,108 crore in the same period of previous fiscal.

The company’s total income from operations rose to 4,465.37 crore for three months ended 31 December 2012 from 3,282.35 crore in the same period last fiscal.

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Published: 17 Feb 2013, 12:40 PM IST
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