One of the leading financial institutions in India, Power Finance Corporation (PFC) Limited, will open its Rs 5,000 crores secured, redeemable Non-Convertible Debentures for public issue on 15th January, 2021.
Rs. 500 crore is base issue size with an option to retain oversubscription up to Rs. 4,500 crore aggregating up to Rs. 5000 crore, which is within the shelf limit of Rs 10,000 crore. Allotment is on first-come, first-served basis.
The Non-convertible debentures (NCDs) are of face value of Rs 1,000 each. The minimum application size is for 10 NCDs aggregating to Rs. 10,000. The Tranche I Issue offers options for tenures of 3, 5, 10 and 15 years.
The 3-year tenure NCD in ‘series I’ will offer a fixed coupon rate of 4.65 percent to 4.80 percent per annum.
The 5-year tenure NCD in ‘Series II’ will offer fixed coupon rate of 5.65 percent to 5.80 percent per annum depending on the category of investors.
The 10-year tenure NCDs offers options of both fixed and floating rates of interest. However, the fixed coupon rate is 6.63 percent to 7.00 percent per annum.
The 15-year tenure NCD offers a range of fixed coupon rates with maximum coupon rate of 7.15 percent per annum.
The Tranche I Issue is scheduled to close on 29th January, 2021, with an option of early closure or extension as decided by PFC’s Board of Directors or a duly constituted committee.