NEW DELHI: State-owned power sector financier Power Finance Corporation (PFC) announced on Thursday that it will, on Friday, launch its first issue of taxable bonds for individual buyers. The first tranche of the non-convertible debentures (NCD) will be worth Rs 5,000 crore and the subscription window for retail buyers will be open January 15 and close on January 29.
According to PFC Chairman and Managing Director RS Dhillon, the company is planning more such issues going forward. PFC has already sold tax-free infrastructure bonds to retail investors and this will be its maiden taxable bond issue to individual buyers. In total, PFC is aiming to raise Rs 10,000 crore through such NCD issues.
So far this financial year, PFC has raised Rs 67,000 crore against its overall borrowing plan of Rs 1.18 lakh crore for 2020-21. Dhillon noted that the company may choose to issue the second tranche of NCDs this fiscal year too if the response to the first issue is good.
PFC has been disbursing a substantial chunk of loans to stressed power distribution companies over the past three quarters under the government’s liquidity relief measures. As for the current NCD issue, the proceeds of the bonds will be used for onward lending, financing or refinancing the existing indebtedness of the company, debt servicing and general corporate purposes, it said.