Power Finance Corporation (PFC) has announced a public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs) with a face value of ₹1,000 each. The issue aims to raise up to ₹500 crores (Base Issue Size) with an option to retain oversubscription up to ₹4,500 crores, aggregating up to ₹5,000 crores. This Tranche I issue is within the shelf limit of ₹10,000 crores.
Public Issue Details
Power Finance Corporation Limited (PFC) is proceeding with a public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs). The face value of each NCD is set at ₹1,000, except for Zero Coupon NCDs which have a face value of ₹1,00,000 each.
Issue Size and Structure
The base issue size is ₹500 crores, with an option to retain oversubscription up to ₹4,500 crores, bringing the total Tranche I Issue Limit to ₹5,000 crores. This offering falls within the overall shelf limit of ₹10,000 crores.
Issue Dates
The issue opens on January 16, 2026, and closes on January 30, 2026. Applications will be accepted from 10:00 a.m. to 5:00 p.m. (Indian Standard Time) on working days. On the closing date, applications will be accepted until 3:00 p.m. and uploaded until 5:00 p.m.
Tenor and Redemption
The NCDs will be offered in various series with tenors of 5 years, 10 years, and 15 years, with different coupon rates depending on the category of investor. Specific details regarding coupon rates, effective yields, and maturity amounts for each series are available in Annexure A.
Security and Charge
The principal amount of the NCDs, along with all interest, will be secured by a first pari-passu charge through hypothecation of the book debts/receivables, ensuring a security cover of at least 100% throughout the tenure.
Interest Payment and Yields
The coupon rates vary depending on the series and investor category. For instance, for the 5-year tenor (Series I), the coupon rate for Category I and II investors is 6.85% per annum, with an effective yield of 6.85%. For the 10-year tenor (Series II), the coupon rate is 7.00% per annum for Category I and II investors, with an effective yield of 6.99%. The 15-year tenor (Series IV) offers a coupon rate of 7.05% to Category I and II investors, resulting in an effective yield of 7.04%. Series III NCDs are Zero Coupon NCDs.
Source: BSE
