The Business Bytes
PRIYABRAT BISWAL
BHUBANESWAR, JANUARY 14, 2021
Leading power sector lender Power Finance Corporation Limited (PFC) on Thursday announced that it would open its Rs 5,000 crore public issue of secured, redeemable Non-Convertible Debentures (NCDs) on January 15, 2021.
The NCDs are of face value of Rs 1,000 each. The base issue size is Rs 500 crore with an option to retain oversubscription of up to Rs 4,500 crore, aggregating up to Rs 5,000 crore, which is within the shelf limit of Rs 10,000 crore. Allotment would be on first come, first serve basis and the first tranche is scheduled to close on January 29, 2021.
In the first tranche of issuance, PFC offers tenures of 3, 5, 10 and 15 years. The 3-year tenure NCD will have a fixed coupon rate of 4.65-4.8 per cent per annum. The 5-year tenure NCD will offer a fixed coupon rate of 5.65-5.80 per cent per annum depending on the category of investors. The 10-year tenure NCDs offer options of both fixed and floating rates of interest. The fixed coupon rate is 6.6-7 per cent per annum. The 15-year tenure NCD offers a range of fixed coupon rates with maximum coupon rate of 7.15 per cent per annum.
The minimum application size is for 10 NCDs aggregating to Rs.10,000 collectively across all series of NCDs, and in multiples of 1 thereafter.
The NCDs are proposed to be listed on BSE Limited.
