PFC plans to raise up to Rs 6,100 cr via bond sales
Power Finance Corporation is looking to raise up to ₹6,100 crore through two sets of bond sales, with submission of bids likely next week. The first bond sale is likely to be a re-issuance of bonds with an original tenor of five years with a base size of ₹600 crore and a greenshoe option of ₹2,500 crore, sources aware of the development said.
The tenor of the re-issuance is 1 year, ten months and ten days. The original coupon of the bonds was 7.17%.
Minimum application is for ₹1 crore and thereafter in multiples of ₹10 lakh. The submission of bids is on July 10 and time for bidding is 10:30-11:30 am IST, sources said.
The second option that the power financier is exploring is that of a fresh issuance of bonds maturing in ten years, with the base size at ₹500 crore and a greenshoe option of ₹2,500 crore. The bonds are rated AAA by Crisil, Care and ICRA.
The allotment date of bonds is on July 12. Separately, PFC's subsidiary Rural Electrification Corporation is in the process of raising around $500 million this month through a five-year loan under the external commercial borrowing route.
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