business | IST

PFC launches taxable bond issue of Rs 5,000 crore; says exploring insurance in international markets too

State-owned Power Finance Corporation (PFC) has announced the launch of its maiden taxable bond issue of Rs 5,000 crore for individual buyers that will open today, on January 15, 2021. The company has also indicated that it would come out with more such issues going forward. RS Dhillon, CMD of PFC, spoke to CNBC-TV18 discussed this.

State-owned Power Finance Corporation (PFC) has announced the launch of its maiden taxable bond issue of Rs 5,000 crore for individual buyers that will open today, on January 15, 2021. The company has also indicated that it would come out with more such issues going forward. RS Dhillon, CMD of PFC, spoke to CNBC-TV18 discussed this.
“For a wider investor appetite, we have kept the tenure of three to fifteen years for the bond issue. The rationale is to capture all the investors across the spectrum and we have filed the prospectus for raising around Rs 10,000 crore which is around 10 percent of our yearly borrowings. For wider participation, we have kept the first tranche of around Rs 5,000 crore including the Greenshoe option. If the response is satisfactory, we will tap the market again for the balance Rs 5,000 crore,” he said.
“We have a strategy to diversify our borrowings and we are exploring the bond issuance in the international market also. Depending on the additional requirements, we will tap the private placement bonds and term loans on the market. For wider participation with respect to further diversifying we have gone in for this retail tax bond segment. This will create a new chapter in PFC’s history for raising funds and open a new window of borrowing to our existing diversified lenders case,” he added.
For entire interview, watch the video