Kolkata: Power Finance Corporation (PFC), a non-banking finance company operating in the power sector, has successfully carried out issuance of 10.25-year $ 750 million bonds under Reg S - 144 A route.
The bonds have a fixed coupon of 3.95% per annum and a yield of 4.066%.According to a statement by PFC, with this offering, it becomes the first Indian public sector company to issue senior unsecured US-dollar bonds with a tenure of more than 10 years.This is also PFCs third international bond issuance in FY 19-20 as well as PFCs largest single tranche bond.
The final order book amounted to more than $ 2.2 billion, attracting active and wider participation from investors across US, European and Asian markets, with around 42% participation from the US market, it said in the statement.The proceeds from bonds will be utilised in accordance with the external commercial borrowing regulations of the Reserve Bank of India including for on lending to power sector utilities.With this issue, PFCs borrowings touched $12 billion for FY 19-20.
Its total foreign currency raising stands at around $ 3 billion, while domestic raising is around $ 7 billion.
Chairman and managing director at PFC, Rajeev Sharma said: The deal concluded at very attractive terms, which shows the high confidence of investors in PFCs business as well as its credit profile and the growth story of Indian Power sector.