New Delhi, Jan 17 (SocialNews.XYZ) The Power Finance Corporation Ltd (PFC) has successfully carried out the issuance of 10.25 year $750 million bonds on January 15 under Reg S & 144 A route. The bonds have a fixed coupon of 3.95 per annum and a yield of 4.066 per cent.
With this offering, PFC becomes the first Indian public sector company to issue senior unsecured $ bonds with a tenure of more than 10 years.
This is also the PFC's third international bond issuance in FY 19-20 as well as its largest single tranche bond. The final order book amounted to more than $2.2 billion, attracting active and wider participation from investors across US, European and Asian markets, with around 42 per cent participation from the US 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.
With this issue, under the PFC borrowing programme of $12 billion equivalent for FY 19-20, the total foreign currency raising stands at around $3 billion, while the domestic raising is at around equivalent of $7 billion.
"The deal concluded at very attractive terms 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 chairman and managing director Rajeev Sharma said.
Source: IANS
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