Power Finance Corporation Ltd (PFC) has successfully raised $500 million through a recent issue of US Dollar-denominated bonds.
The bonds under the “Reg S” route with a fixed maturity date of May 16, 2031, were issued on January 29, 2021.
This is the longest tenor bond issuance from India since the start of the year. The bonds have a fixed coupon of 3.35 per cent per year, which was inside the fair value of PFC’s secondary bonds.
The order book amounted to around $2.55 billion, achieving an oversubscription of 5.1 times, a release from PFC said.
Commenting on the success of bond issuance, Chairman and Managing Director of PFC, R.S. Dhillon expressed satisfaction that despite the challenging COVID situation being witnessed globally, PFC’s bond offer attracted wide participation from international investors. The deal concluded at very attractive terms, which reflects confidence of investors in PFC’s business as well as its credit profile and the growth story of Indian power sector.
The proceeds from bonds will be utilized in accordance with the external commercial borrowing regulations of the Reserve Bank of India including for on-lending to power sector utilities, the release added.
In mid-January 2021, PFC was in the domestic market to raise up to Rs.5,000 crore through a public issue of non-convertible bonds. (Read more).
(Featured photograph for illustration only)
