New Delhi: Power Finance Corporation Limited (PFC) has successfully raised USD 500 million on January 29, through the issuance of USD denominated bonds under Reg S route with a fixed maturity of May 16, 2031, the company said in an official statement on Tuesday. This is the longest tenor bond issuance from India since the start of the year. The bonds have a fixed coupon of 3.35 percent pa which was inside the fair value of PFC's secondary bonds. The order book amounted to around USD 2.55 billion, achieving an oversubscription of 5.1 times.
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, said PFC.
Commenting on the success of bond issuance, PFC's Chairman and Managing Director (CMD) RS Dhillon expressed satisfaction that despite the challenging COVID-19 situation being witnessed globally, PFC's bond offer attracted wide participation from international investors. The deal concluded at very attractive terms, which reflects the confidence of investors in PFC's business as well as its credit profile and the growth story of the Indian power sector.
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