PFC bond issue extended on poor demand
According to PFC executive, most of the demand came from retail and high net worth individuals, which constituted over R300 crore of the current raise, while demand for the paper from qualified institutional buyers (QIBs) and corporates was weak.
According to the another source, PFC extended closing by a weak as it hopes that investors who have locked in their funds in recent initial pubic offerings by Bharti Infratel, PC Jewelers and CARE Ratings India, will invest in the tax-free bond of the company after they get their sum that was not allotted to them in the issue.
This is the second disappointing tax-free bond issuance after Rural Electrification Corp (REC) could raise only about R2,100 crore, less than half of R4,500 crore it intended to raise. Two back to back tepid responses has caste doubts if the 10 infrastructure finance companies will be able to raise R53,500 crore allowed by the government through the tax free bond route.
“I don’t think government target is achievable at the rate things are going on,” said a PFC executive, who did not want to be named, adding low coupon rates could be a factor for this tepid response. Last fiscal, PFC
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