New Delhi: State-owned power sector finance company Power Finance Corporation (PFC) said it has raised USD 300 million via issuance of USD-denominated bonds.

In a statement on Monday, PFC said it has become the first central public sector undertaking (CPSU) and the first in the NBFC space to successfully tap the international bond market following the announcement of the special swap facility by the Reserve Bank of India (RBI) in its latest monetary policy statement.

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The USD 300-million senior unsecured USD-denominated bonds with a tenor of 5 years are "priced at 105 basis points over the benchmark five-year US Treasury for a fixed coupon of 5.32 percent per annum", PFC said.

The issue saw a strong investor demand, attracting active and wider participation from investors across European and Asian markets, the company stated.

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"This issuance supports the Government of India's broader objective to attract foreign capital into the country. The deal reflects confidence of investors in PFC's business as well as its credit profile and the growth story of Indian Power sector," said Parminder Chopra, Chairman and Managing Director of PFC.

The proceeds from bonds will be used for on-lending to the power and infrastructure sector and general corporate purposes, PFC said.

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