PFC to raise up to Rs 5,000 crore through NCDs
NEW DELHI: Power Finance Corporation, a Maharatna Central Public Sector Enterprises (CPSE), is going to raise Rs 5000 crore through the public issue of Non-Convertible Debentures (NCD). The proceeds from the NCD will be used for onward lending, financing or refinancing the existing debts of the company. And a maximum of up to 25% will be utilised for general corporate purposes.
The base issue size is Rs 500 crore with a green shoe option of up to Rs 4,500 crore, aggregating up to Rs 5,000 crore. Each NCD will have a face value of Rs 1,000. The tranche I of the issue opens on 21 July 2023, and closes on July 28, 2023, with an option of early closure or extension in compliance with Sebi rules.
The minimum application size would be Rs 10,000 (10 NCDs) and thereafter in multiples of Rs. 1,000. The NCDs will have tenures of 3 years, 10 years and 15 years with annual coupon payments. Effective yield for NCD holders in various categories ranges from 7.44% to 7.54% per annum.