Power Finance Corporation aims to raise Rs 5,000 crore through NCDs

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Power Finance Corporation on Wednesday announced that it aims to raise funds of up to Rs. 5,000 crore through a public offering of Non-Convertible Debt Notes (NCDs) starting from July 21. The release is scheduled to close on July 28.

Non-communicable diseases are divided into three vesting options of three years, 10 years, and 15 years. The base issuance size is set at Rs 500 crore and there is a green shoe option allowing for an additional Rs 4,500 crore, bringing the total fundraising to Rs 5,000 crore, which is well within the allowed shelf limit of Rs 10,000 crore, the company said in a statement.

10% of the allocation is allocated to institutional investors, with an equal 10% allocated to non-institutional investors. The share for high net worth individuals is 40%, mirroring the same share for retail investors, which is also set at 40%.

The actual return offered to NCD holders varies based on the different categories and ranges from 7.44 percent to 7.54 percent per annum.

Non-communicable diseases have been given the highest credit rating of “AAA” with a “stable” outlook by CARE Ratings, ICRA and CRISIL Ratings.

“Our loan book to date includes generation, transmission and distribution areas. Under generation of the total, 12 percent of the total is renewable, the balance is through heat (41 percent),” said Parminder Chopra, who holds additional responsibility as PFC’s chairman and managing director. “PFC has funded 37 percent (of the total loan book) for distribution, and 7 percent for conversion.”

As of March 31, the total debt owed to the company was Rs. 3.63 crore. Of this, Rs 2.08 crore was raised by domestic bonds, while Rs 64,554 crore was raised by foreign currency bonds.

The principal book issue managers are JM Financial Limited, AK Capital Services Limited, Nuvama Wealth Management Limited, SMC Capitals Limited and Trust Investment Advisors Private Limited. Non-communicable diseases will be listed on the Bombay Stock Exchange (BSE).