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PFC to launch  ₹5,000 crore public NCD issue 15 Jan. (Reuters)
PFC to launch 5,000 crore public NCD issue 15 Jan. (Reuters)

PFC plans to launch 5,000 crore NCD issue

  • Lead managers to the issue are Trust Investment Advisors Private Limited, A. K. Capital Services Limited, Edelweiss Financial Services Limited and JM Financial Limited. It has received the highest rating from Crisil, CARE, and Icra

Power Finance Corp. Ltd (PFC) plans to raise up to 5,000 crore through a public issue of secured, redeemable non-convertible debentures (NCDs).

The state-run company will launch the issue for subscription on Friday. The base size of the issue has been kept at 500 crore with a greenshoe option of up to 4,500 crore.

The first tranche of the issue will close on 29 January, with an option for early closure or extension. The bonds have maturity of three, five, 10 and 15 years.

The three-year bond in Series I will offer a fixed coupon rate of 4.65% per annum to 4.80% per annum, while the five-year bond in Series II will offer fixed coupon rates of 5.65-5.80% per annum, depending on the category of investors.

The 10-year bond offers options of both fixed and floating rates of interest. The fixed coupon rate is 6.63-7.00% per annum. The floating coupon rate, on the other hand, is based on the benchmark FIMMDA 10-year G-Sec (annualized) + spread of 55 basis points to 80 basis points, subject to floor and cap rate depending on the category of investors. The 15-year bond offers a range of fixed coupon rates with a maximum coupon rate of 7.15% per annum.

The minimum application size is for 10 NCDs aggregating 10,000 collectively across all series of NCDs and in multiples of one NCD of face value of 1,000 each, thereafter.

The NCDs are proposed to be listed on the BSE. The lead managers to the issue are Trust Investment Advisors Private Ltd, A. K. Capital Services Ltd, Edelweiss Financial Services Ltd and JM Financial Ltd. The issue has received the highest rating from credit rating agencies Crisil, CARE and ICRA. The ratings indicate ‘high degree of safety’ regarding timely servicing of financial obligations and such instruments carry lowest credit risk.

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