Power Finance Corporation to launch Rs 4,590 cr tax-free bond issue from Dec 14
"The tax free bond issue to raise close to Rs 4,590 crore would open on December 14 and close on December 21," PFC Chairman and Managing Director Satnam Singh told reporters here.
The tranche 1 of the issue is likely to raise up to Rs 1,000 crore with an option to retain oversubsription up to shelf limit of Rs 4,590 crore, he said.
The bond issue would be for a period of 10-15 years offering an interest rate between 7.19 per cent and 7.86 per cent. The bonds are proposed to be listed on the BSE.
Tax free bonds would be raised through the Non-convertible debenture (NCD) route.
An NCD is a type of loan-linked security issued by a company that cannot be converted into stock and usually carries a higher interest rate than a convertible debenture.
The funds would be utilised towards lending purposes, debt servicing and working capital requirements.
PFC is engaged in financing power generation and transmission projects.
ICICI Securities Ltd, AK Capital Services Ltd, Enam Securities, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are acting as lead managers to the issue.
Meanwhile, the company is planning to set up a USD 1 billion private equity (PE) fund in joint venture with Tata Capital to invest in the equity of private power projects.
Tata Capital will have 51 per cent equity holding in the JV, while PFC shall have
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