Companies

PFC bond issue to open on Dec 14

| | Updated on: Dec 12, 2012

Power Finance Corporation Ltd (PFC) on Wednesday said it will issue tax-free bonds up to Rs 4,590 crore. The issue will open on December 14 and close on December 21.

This is the second time PFC is offering tax-free bonds. The last issue was in 2011-12.

For retail investors, the issue will have a coupon rate of 7.69 per cent per annum for the 10-year bond and 7.86 per cent per annum for the 15-year bond.

For all other categories of customers, the coupon rate would be 7.19 per cent per annum for 10 years and 7.36 per cent for 15-year bonds.

“The pre-tax yield would be 11.13 per cent for the 10-year paper and 11.37 per cent for 15 years for retail customers,” said Satnam Singh, Chairman and Managing Director, PFC.

The issue is spread across 25 per cent for qualified institutional bidders; 15 per cent for corporates; 20 per cent for HNIs; and up to 40 per cent for retail customers.

PFC has an order book of Rs 170,000 crore. It is the largest NBFC in the country in terms of networth at Rs 21,291 crore, Singh told mediapersons.

Last time the PFC bond was oversubscribed 2.6 times. ” We received Rs 10,500 crore against Rs 4,033 crore,” the Chairman said.

>Siddhartha.s@thehindu.co.in

Published on March 12, 2018

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