PFC is issuing bond issue on 15 January 2021.
Power Finance Corporation Limited (PFC) is issuing taxable bonds to individual buyers for the first time. The PFC said that the proceeds from the bond issue will be used by the company to provide loans, provide funding or refinancing existing debt.
- January 12, 2021, 10:34 PM IST
Taxable bonds offered to individual investors for the first time
PFC is issuing taxable bonds to individual buyers for the first time. The PFC said that the proceeds from the bond issue will be used by the company to provide loans, provide funding or refinancing existing debt. Along with this, it will also be used in the existing borrowings of the company, payment of its interest, payments to be made ahead of time and the normal work of the company.
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At least 75 per cent of the money raised from the bond is likely to be used for lending or re-financing the existing debt. According to the company, investors with a face value of Rs 1,000 will be made available for redeemable non-convertible debentures (NCD) subscription. Subscribers can shop in 10 NCD lots. Institutional (Non-Institutional), high-net worth individual investors and retail investors can invest in this bond issue.
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Investors will get this much interest on bond issue
Non-parental names, foreign nationals, NRIs, foreign institutional investors, foreign portfolio investors, qualified foreign investors, overseas corporate bodies and foreign venture capital funds cannot invest in PFC’s bond issue. These bonds are being offered for a period of 3 years, 5 years, 10 years and 15 years. For Institutional and Non-Institutional Investors, the bond rate of interest for 3 years will be 4.65%. At the same time, it will be 5.65 percent for 5 years, 6.78 percent for 10 years and 6.96 percent for 15 years.