PFC plans to raise up to ₹5,000 crore through public issue of NCDs

Power Finance Corporation plans to raise up to ₹5,000 crore via a public NCD issue, offering up to 7.30% returns and targeting retail investors

Power Finance Corporation Limited (PFC) plans to raise up to ₹5,000 crore through a public issue of non-convertible debentures (NCDs), with a base size of ₹500 crore and a green shoe option of up to ₹4,500 crore. The issue opens on January 16 and closes on January 30, with an option for early closure or extension, in line with Securities and Exchange Board of India regulations.

 

On December 23, 2025, PFC withdrew bond issuances totalling ₹6,000 crore after investor bids came in at yields higher than what the issuer was willing to accept. This marked the third instance in the past two months of PFC pulling back a bond issue.

 

“There was some volatility and we wanted the market to settle down before tapping it again. But the main reason to bring out a public bond is to bring this issue to retail investors, as we see it as a strong avenue to mobilise domestic funds,” said Parminder Chopra, chairman and managing director, PFC. The bond issue that was withdrawn was meant for institutional investors.

 

The NCDs are rated “CARE AAA; Stable” by CARE Ratings, “CRISIL AAA/Stable” by CRISIL Ratings, and “[ICRA] AAA (Stable)” by ICRA.

 

The issue offers multiple series with tenors of five, 10 and 15 years, including a zero-coupon option. Coupon rates across categories range from 6.85 per cent to 7.30 per cent per annum, with the highest rate applicable to retail investors opting for the 15-year annual interest series. The minimum application amount is ₹10,000, except for the zero-coupon series, where the minimum investment is one debenture.

 

PFC said that at least 75 per cent of the net proceeds from the tranche will be used for onward lending, refinancing of existing debt and debt servicing, while up to 25 per cent will be used for general corporate purposes. Proceeds from the zero-coupon NCDs will be used only for onward lending.

 

Tipsons Consultancy Services, A K Capital Services, Nuvama Wealth Management, and Trust Investment Advisors are the lead managers to the issue. Beacon Trusteeship is the debenture trustee, and KFin Technologies is the registrar.

 

PFC is a government-owned non-banking financial company registered with the Reserve Bank of India and classified as an infrastructure finance company, with a focus on financing the power sector.

 

The company had earlier withdrawn a ₹3,000-crore, three-year bond issuance and a ₹3,500-crore, 15-year bond issuance on November 25 and December 10, respectively, due to elevated corporate bond yields.