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Power Finance Corporation, Sidbi scrap ₹11,500 crore bond issues

Despite a recent RBI rate cut, investor bids stayed above issuer expectations, forcing PFC and SIDBI to cancel planned bond raises amid rising yields and market volatility

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Market participants said that order books were strong, but bids landed at slightly higher yields because investors were aligning pricing with the revised sovereign benchmarks, not the lower levels issuers had priced in.

Anjali Kumari Subrata Panda Mumbai

4 min read Last Updated : Dec 09 2025 | 11:25 PM IST

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State-owned Power Finance Corporation (PFC) and Small Industries Development Bank of India (Sidbi) scrapped their scheduled bond issuances totalling ₹11,500 crore on Tuesday, after investor bids in the auction came in at yields higher than what the issuers were willing to accept, said sources aware of the development.

PFC was in the market to raise ₹3,500 crore (a ₹600-crore base issue and a ₹2,900-crore green shoe) through 15 year bonds, while SIDBI was looking to raise ₹8,000 crore (a ₹2,000-crore base issue and a ₹6,000-crore green shoe) through bonds maturing in 3 years and 4 months.

Market participants said that

Topics : SIDBI PFC Bond Yields RBI rate cut bond market