12,080.85-45.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

PFC’s dollar bonds receive 42% US participation

PFC becomes the first Indian public sector company to issue senior unsecured US-dollar bonds with a tenure of more than 10 years.

, ET Bureau|
Last Updated: Jan 17, 2020, 06.26 PM IST
0Comments
Getty Images
Fund-raising-Getty-1200
Kolkata: Power Finance Corporation (PFC), a non-banking finance company operating in the power sector, has successfully carried out issuance of 10.25-year $ 750 million bonds under Reg S & 144 A route. The bonds have a fixed coupon of 3.95% per annum and a yield of 4.066%.

According to a statement by PFC, with this offering, it becomes the first Indian public sector company to issue senior unsecured US-dollar bonds with a tenure of more than 10 years.

This is also PFC’s third international bond issuance in FY 19-20 as well as PFC’s 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% participation from the US market, it said in the statement.

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, PFC’s borrowings touched $12 billion for FY 19-20. Its total foreign currency raising stands at around $ 3 billion, while domestic raising is around $ 7 billion.

Chairman and managing director at PFC, Rajeev Sharma said: “The deal concluded at very attractive terms, which shows the high confidence of investors in PFC’s business as well as its credit profile and the growth story of Indian Power sector.”

Also Read

Indian firms issue record dollar bonds in first six weeks of 2020

Adani group firm raises $1 billion via dollar bonds

Yields on Shriram Transport’s dollar bonds drop on easing liquidity conditions

ONGC plans to raise $500m via dollar bond sale

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service