PFC to use 75% of its ₹5,000 cr NCD proceeds for onward lending, debt servicing
₹5,000 crore NCD issue for onward lending and debt servicing, said a company statement. Recently, the power sector-focused NBFC filed ‘tranche I prospectus’ for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs. 1,000 each.
The base issue size is ₹500 crore with a green shoe option of up to Rs. 4,500 crore, aggregating up to ₹5,000 crore (Tranche I Issue), which is within the shelf limit of ₹10,000 crore (overall issue). In a statement on Wednesday, the company said, “Out of the net proceeds of the Tranche I Issue, at least 75% shall be utilised for the purpose of onward lending, financing/refinancing the existing indebtedness of the company, and /or debt servicing (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company) and a maximum up to 25% will be utilised for general corporate purposes." The ‘Tranche I’ issue opens on Friday, and closes on 28 July with an option of early closure or extension in compliance.
The NCDs are proposed to be listed on BSE. The minimum application size would be ₹10,000 (10 NCDs) and thereafter in multiples of ₹1,000 thereof. This issue has maturity or tenure options of 3 years, 10 years and 15 years for NCDs with annual coupon payment being offered across series I, II, and III, respectively.
Effective yield for NCD holders in various categories ranges from 7.44% to 7.54% per annum. In financial year 2023, the company’s consolidated revenue from operations stood at ₹77,568.30 crore against ₹76,261.66 crore a year ago, on the back of increase in interest income on loans and other operating income. Consolidated net profit for FY23 was at ₹21,178.59 crore as against ₹18,768.21 crore
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