PFC
Power Finance Corporation Limited plans to raise Rs 5,000 crore through public issue of bonds, what investors need to know
State-owned Power Finance Corporation Limited on Thursday announced it plans to raise up to Rs 5,000 crore through the public NCD issue.
The base issue size is Rs. 500 crore, with a green shoe option of up to ₹4,500 crore, aggregating to a total issue size of Rs. 5,000 crore. The issue falls within the company’s approved shelf limit of Rs. 10,000 crore.
Tranche I of the issue opens on Friday, January 16, 2026, and closes on Friday, January 30, 2026, with an option for early closure or extension in accordance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, as amended.
The non-convertible debentures (NCDs) are proposed to be listed on the National Stock Exchange of India Limited (NSE), which will act as the designated stock exchange for the issue. The NCDs have been assigned the highest credit ratings by all three major agencies—“CARE AAA; Stable” by CARE Ratings Limited, “CRISIL AAA/Stable” by CRISIL Ratings Limited, and “[ICRA] AAA (Stable)” by ICRA Limited.
Speaking at a press conference in Kolkata, Power Finance Corporation (PFC) Chairperson and Managing Director Parminder Chopra said India’s power sector is expanding at an unprecedented pace, both technologically and structurally.
“Investing in PFC is about investing in everyday India—lighting homes, supporting factories that create jobs, and strengthening the foundation powering India’s ambitions. This is truly India’s public bond issue. With this issuance, our confidence is turning into commitment,” she said.
Chopra added that the bond issue offers a strong avenue to mobilise domestic savings in support of India’s infrastructure and growth priorities. She also highlighted that the issue marks India’s first public zero-coupon bond issuance and is the first public bond issue by a public sector undertaking (PSU) in both the current financial year and calendar year.
“Through this bond issuance, we invite citizens and institutions alike to partner in India’s growth story,” she said.
The minimum application size is ₹10,000 (10 NCDs), with additional investments in multiples of ₹1,000 (one NCD), except for Series III zero-coupon NCDs, where the minimum application is one NCD and thereafter in multiples of one NCD.
The issue offers multiple maturity options, with tenures of five years, ten years, and fifteen years for NCDs carrying annual coupon payments under Series I, II, and IV, respectively. The effective annual yield for investors across categories ranges from 6.85% to 7.30%.
Of the net proceeds from Tranche I, at least 75% will be utilised for onward lending, financing or refinancing existing indebtedness, and/or debt servicing, including repayment or prepayment of principal and interest on existing borrowings. Up to 25% of the proceeds will be used for general corporate purposes.
The company clarified that funds raised through the issuance of zero-coupon NCDs will be exclusively utilised for onward lending and will not be deployed for any other purpose.
(Reporting by Supriyo Hazra)
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