Power Finance Corporation raises global bond issuance size to $5 billion

State-owned Power Finance Corporation on Saturday said it has increased quantum of funds to be raised via bonds to $five billion from $three billion under its Global Medium Term Note Programme.

"The PFC has updated the existing Global Medium Term Note Programme from $3 billion to $5 billion," it said in a BSE filing.

The company also launched issuances of $3 million worth bonds at 3.25 per cent due in 2024 and $450 million at 3.90 per cent due in 2029 under $five billion Global Medium Term Note Programme, as per the filing.

It said the Notes (bonds) have been priced on September 5, 2019 and carry a coupon of 3.25 per cent and 3.90 pe cent per annum, respectively, for 5 and 10 years notes, payable semi-annually, in arrears.

Unless previously redeemed pursuant to the terms and conditions, the Notes will mature on September 16, 2024 and September 16, 2029, respectively, and all rupees principal and interest payments will be made in USD.

The Notes represent direct, unconditional and unsecured obligations of the issuer and will rank pari passu among themselves and all other unsecured obligations of the PFC. It will be listed on the Singapore Exchange Securities Trading Limited, NSE IFSC and India INX.

The net proceeds from the issuance of 5-year Notes will be applied for on-lending in the power sector and the net proceeds from the issuance of 10-year Notes will be applied for general corporate purposes, it added.