Feb 03: Power Finance Corporation Ltd (PFC), the leading NBFC in power sector, successfully raised USD 500 million on 29.01.2020 through the issuance of USD denominated Bonds under ‘Reg S route’ with a fixed maturity of 16.05.2031.
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.
The order book amounted to around USD 2.55 billion, achieving an oversubscription of 5.1 times.
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.
Commenting on the success of bond issuance, Chairman and Managing Director of PFC, Mr. 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.Disclaimer: We donot claim that the images used as part of the news published are always owned by us. From time to time, we use images sourced as part of news or any related images or representations. Kindly take a look at our image usage policy on how we select the image that are used as part of the news.