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State-run Power Finance Corporation (PFC) has filed a draft shelf prospectus for raising up to ₹10,000 crore through the non-convertible debentures (NCD) route.
The public issue of secured, rated, listed, redeemable NCDs of face value of ₹1,000, each aggregating up to ₹10,000 crore (shelf limit) and will be issued in one or more tranches, the Maharatna company said in its prospectus, which was filed on July 6 with the BSE.
PFC is a systemically important non-deposit taking non banking finance company (NBFC) in the power sector.
Net proceeds
In the prospectus, the company said that at least 75 per cent of the net proceeds will be utilised for onward lending, financing/ refinancing the existing indebtedness of the company, and/or debt servicing (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the company).
The remaining 25 per cent will be for general corporate purposes, it added.
The lead managers appointed to the issue are JM Financial, AK Capital Services, Nuvama Wealth Management, SMC Capitals and Trust Investment Advisors.
KFIN Technologies is the registrar and Beacon Trusteeship is the Debenture Trustee to the issue. The NCDs are proposed to be listed on BSE with BSE as the Designated Stock Exchange.
“The NCDs proposed to be issued under the issue have been rated CARE AAA Stable (Triple A; Outlook: Stable)’ by CARE Ratings to the long term borrowing programme of our company, for an amount up to ₹60,000 crore for FY24, by its letter dated March 31, 2023 revalidated as on June 21, 2023,” PFC said in the document.
Besides, the issue has also been rated as AAA/Stable by CRISIL and ICRA, it added.
Draft shelf prospectus
The draft shelf prospectus will be open for public comments for a period of seven working days from the date of filing of this prospectus with the stock exchange.
For FY23, PFC’s revenue from operations increased by 1.71 per cent y-o-y to ₹77,568.30 crore against ₹76,261.66 crore a year ago on the back of increase in interest income on loans and other operating income. Net profit for the period increased by 12.84 per cent y-o-y to ₹21,178.59 crore against ₹18,768.21 crore last year.
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