PFC issues $500 million senior unsecured bonds for more than 10 years

New Delhi [India], February 2 : State-owned Power Finance Corporation (PFC) has successfully raised 500 million dollars through the issuance of US dollar denominated bonds under 'Reg S route' with a fixed maturity of May 16, 2031.
This is the longest tenor bond issuance from India since the year began. The bonds have a fixed coupon of 3.35 per cent per annum, which was inside the fair value of PFC's secondary bonds.
The order book amounted to 2.55 billion dollars, achieving an oversubscription of 5.1 times, according to an official statement issued on Tuesday.
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.
Chairman and Managing Director RS Dhillon expressed satisfaction 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.