Leading power sector lender Power Finance Corporation ltd (PFC), raised $500 million through issuance of dollar-denominated bonds under Reg S route with a fixed maturity of May 16, 2031.
The company in a statement said this is the longest tenure bond issuance from India since the start of the year. The bonds have a fixed coupon of 3.35 per cent per annum,
PFC’s statement said the order book amounted to around $2.55 billion, achieving an oversubscription of 5.1 times. 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, said the company.
Earlier last month, PFC launched its maiden public bond sale for retail investors to raise Rs 5,000 crore. This paper reported recently PFC will raise Rs 1.18 trillion this financial year and also tap the domestic retail bond market.
R S Dhillon, Chairman and Managing Director, PFC said that despite the challenging Covid situation being witnessed globally, PFC’s bond offer attracted wide participation from international investors. “The deal concluded at very attractive terms, which reflects confidence of investors in PFC’s business as well as its credit profile and the growth story of Indian power sector,” he said.