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Power Finance Corporation (PFC) has raised $500 million (₹3,650 crore) through the issuance of dollar-denominated bonds under Reg-S route of the US Securities Act on January 29. The bonds have a fixed maturity of May 16, 2031, making them the longest tenor issue from India this year.
The notes were priced on January 21, and the issue was oversubscribed by 5.1 times, with the order book amounting to around $2.55 billion, PFC said in a statement. The bonds have a fixed coupon of 3.35 per cent per annum. They will be listed on the Singapore Exchange Securities Trading Limited, NSE IFSC and India INX.
“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,” PFC said. The union budget has provided an outlay for a ₹3.06 lakh crore financial assistance scheme to utilities.
This issue by PFC is separate from the ₹10,000 crore that the power sector NBFC is raising through its maiden bond issue of taxable non-convertible debentures, the first tranche of which, for ₹5,000 crore, was opened on January 15 and closed on January 29, according to the company’s prospectus.
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