PFC raises $500M via bonds issuance with longest tenor of 10 years; Stock closes 5% up

The bonds have a fixed coupon of 3.35% p.a. which was inside the fair value of PFC’s secondary bonds.

Feb 03, 2021 04:02 IST India Infoline News Service

Power Finance Corporation Ltd.
State-run Power Finance Corporation (PFC) has successfully raised  $500 million through the issuance of USD denominated Bonds under ‘Reg S route’ with a fixed maturity of May 16, 2031.

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 the confidence of investors in PFC’s business as well as its credit profile and the growth story of the Indian Power sector.

Power Ministry said that this is the longest tenor bond issuance from India since the start of the year. The bonds have a fixed coupon of 3.35% p.a. which was inside the fair value of PFC’s secondary bonds.

Notably, the order book amounted to $2.55 billion, achieving an oversubscription of 5.1 times.

On Sensex, PFC settled at Rs125 per piece up 5.17%.

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