Power Finance Corporation Limited
Power Finance Corporation Limited to tap Capital Market to raise uptoRs 5,000 crore via public issue of Secured NCDs
Kolkata: Power Finance Corporation, is one of India’s leading public financial institution and a Schedule-A Maharatna Central Public Sector Enterprises (CPSE), focused on the power sector, has filed tranche I prospectus dated July 17, 2023 for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs. 1,000 each.
The base issue size is Rs. 500 crore with a green shoe option of up to Rs. 4,500 crore, aggregating up to Rs. 5,000crore (“Tranche I Issue”), which is within the shelf limit of Rs. 10,000 crore (“Issue”).
The Tranche I Issue opens on Friday, July 21, 2023, and closes on Friday, July 28, 2023 with an option of early closure or extension in compliance with Securities and Exchange Board of IndiaIssue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”).
The NCDs are proposed to be listed on BSE Limited (“BSE”), with BSE being the Designated Stock Exchange for the Issue. The NCDs have been rated by CARE AAA/Stable by CARE Ratings Limited, CRISIL AAA/Stable by CRISIL Limited and ICRA AAA (Stable) by ICRA Limited.
The minimum application size would be Rs. 10,000 (i.e. 10 NCDs) and thereafter in multiples of Rs. 1,000 (i.e. 1 NCD) thereof.
This issue has maturity / tenure options of 3 years, 10 years and 15 years for NCDs with annual coupon payment being offered across series I, II, and III, respectively. Effective yield for NCD holders in various categories ranges from 7.44% to 7.54% per annum.
Out of the net proceeds of the Tranche I 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 (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company) and a maximum up to 25% will be utilised for general corporate purposes.
For the fiscal year 2023, the company’s consolidated revenue from operations stood at Rs 77,568.30 crore against Rs 76,261.66 crore a year ago on the back on increase in interest income on loans and other operating income. Consolidated Net profit for theFY23 was Rs 21,178.59 crore as against Rs 18,768.21 crore last year.
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