Bonds reflect international investors confidence in PFC business
Power Finance Corporation Ltd (PFC), the leading NBFC in power sector, has raised US$500 million on 29 Jan 2021 through the issuance of USD denominated Bonds to be utilized in accordance with the external commercial borrowing regulations of the Reserve Bank of India including for on-lending to power sector utilities.
The order book amounted to around US$2.55 billion, achieving an oversubscription of 5.1 times, said PFC on 2 Feb 2021.
This is the longest tenor bond issuance from India since the start of the year. The bonds, under ‘Reg S route’ with a fixed maturity of 16 May 2031, have a fixed coupon of 3.35% p.a. which was inside the fair value of PFC’s secondary bonds.
Commenting on the success of bond issuance, PFC Chairman and Managing Director R.S. 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,” said Dhillon. #banking #finance #bonds #investment /fiinews.com
