Power Finance Corporation files Draft Shelf Prospectus for Rs 10,000 crore NCD fund raise

economictimes.indiatimes.com:

Power Finance Corporation, a public financial institution focused on the power sector, has filed a draft shelf prospectus for Rs 10,000 crore non-convertible debentures (NCD) fundraise, the company said on Wednesday. The public issue of secured, rated, listed, redeemable non-convertible debentures of face value of Rs 1000 each aggregating up to Rs 10,000 crore (Shelf Limit) and will be issued in one or more tranches.

The company filed the prospectus on Thursday, July 6 with the Bombay Stock Exchange (BSE). «The net proceeds of the 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 and payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company and up to 25% for general corporate purposes,» the company said in a press statement.

Credit rating for the proposed NCDs is CARE AAA/Stable by CARE Ratings Limited, CRISIL AAA/Stable by CRISIL Limited and ICRA AAA by ICRA Limited. Power Finance Corporation collaborates with various entities such as government agencies, state governments, power utilities, intermediaries, and private sector clients to facilitate the development and implementation of policies, as well as structural and procedural reforms in the Indian power sector.

In recent years, the company has strategically expanded its focus to include projects that have interconnections with core power sector initiatives. This includes activities such as procuring capital equipment for the power sector, securing fuel sources for power generation projects, and participating in related infrastructure development.