PFC Raises $750 Million Through Overseas Bonds
State-run Power Finance Corporation Ltd. on Friday said it has raised $750 million through issuance of overseas bonds to fund business expansion plans.
"PFC, the leading NBFC (non-banking financial company) in power sector, successfully carried out the issuance of 10.25 year $750 million bonds on Jan. 15 2020 under Reg S & 144 A route. The bonds have a fixed coupon of 3.95 percent p.a. and a yield of 4.066 percent. With this offering, PFC becomes the first Indian public sector company to issue senior unsecured USD bonds with a tenure of more than 10 years," it said
This is also PFC's third international bond issuance in fiscal year 2019-20 as well as it’s largest single tranche bond.
The final order book amounted to more than $2.2 billion, attracting active and wider participation from investors across U.S., European and Asian markets, with around 42 percent participation from the U.S. market.
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, PFC said.
With this issue, under the PFC borrowing programme of U.S. dollar equivalent 12 billion for FY19-20, the total foreign currency raising stands at around $3 billion, while the domestic raising is at around USD equivalent 7 billion.
PFC Chairman and Managing Director Rajeev Sharma said, "PFC's bond offer saw a strong demand in the international market and the global investors have chosen to contribute to the development of Indian power sector. The deal concluded at very attractive terms, which shows the high confidence of investors in PFC's business as well as its credit profile and the growth story of Indian Power sector."
PFC, under the administrative control of the Ministry of Power, is a leading Non-Banking Financial Corporation in the country.