PFC, the leading NBFC in the power sector, successfully raised USD 500 million on January 29, 2021, through the issuance of USD denominated bonds under ‘Reg S route’ with a fixed maturity of May 16, 2031, a PFC statement said.
This is the longest tenor bond issuance from India since the start of the year. The bonds have a fixed coupon of 3.35 per cent per annum which was inside the fair value of PFC’s secondary bonds.
The order book amounted to around USD 2.55 billion, achieving an oversubscription of 5.1 times.
The proceeds from bonds will be utilized in accordance with the external commercial borrowing regulations of the Reserve Bank of India including for on-lending to power sector utilities.
Commenting on the success of bond issuance, Chairman and Managing Director of PFC, R S Dhillon expressed satisfaction that despite the challenging COVID-19 situation being witnessed globally, the PFC’s bond offer attracted wide participation from international investors.
The deal concluded at very attractive terms, which reflects confidence of investors in PFC’s business as well as its credit profile and the growth story of Indian Power sector.