Power Finance Corp raises USD 1 bn from global market

Power Finance Corporation (PFC), a state-run NBFC, said Wednesday it has raised USD 1 billion (around 6,940 crore) through issuance of bonds in the international market.

This was PFC's first issuance in the international market after acquiring the government's shareholding in REC, the company said in a BSE filing.

The issuance attracted a strong and diversified order book indicating investor's confidence towards PFC's differentiated credit despite volatile market conditions and concerns over Indian NBFI sector, it mentioned.

PFC finances power sector projects and its main source of revenue is interest income on loans.

"PFC, a government owned NBFC, has successfully tapped international market and raised USD 1 billion through Reg - S bonds in one go," the company said in the filing.

In March 2019, PFC completed the acquisition of majority stake in REC Ltd by transferring Rs 14,500 crore to the government.

Chairman and Managing Director, PFC, Rajeev Shanna said, "The transaction establishes PFC status as leading NBFI in India having priced its first dual and largest USD bonds transaction for government-owned Indian NBFC. This is also PFC's first USD issuance in the five-year tenor.

"The successful completion of the deal underscores investor's continued confidence in PFC post acquisition of REC."