Power Finance Corporation Ltd (PFC), the nation's biggest lender to the power sector, will raise Rs 10,000 crore through bonds in two tranches.
The first tranche of Rs 5,000 crore will open for subscription on January 15 and close on January 29, according to the company's prospectus.
PFC had previously sold tax-free infrastructure bonds to retail investors and this would be its maiden taxable issuance to individual buyers.
The proceeds of the issue would be used for "onward lending, financing / refinancing the existing indebtedness of our company, and/or debt servicing (payment of interest and/or repayment/prepayment of interest and principal of existing borrowings of our company), and general corporate purposes," PFC said.
At least 75 per cent of the proceeds would go towards onward lending and financing/refinancing of existing debt.
Secured redeemable non-convertible debentures (NCD) of face value Rs 1,000 will be available for subscription in lots of 10 NCDs.
The issue is open for four categories of investors - institutional, non-institutional, high net worth individuals, and retail individual investors.
It however is not open to minors without a guardian name, foreign nationals, person resident outside India, foreign institutional investors, foreign portfolio investors, NRIs, qualified foreign investors, overseas corporate bodies, and foreign venture capital funds.
The bonds are being offered in four tenors - 3 years, 5 years, 10 years and 15 years.
The interest rate for institutional and non-institutional investors will be 4.65 per cent, 5.65 per cent, and 6.78-6.95 per cent respectively for bonds of 3, 5, and 15-year tenure. The 10-year bond for these set of investors will fetch 6.53 to 6.80 per cent interest.
The interest for high net worth individuals and retail individual investors would be 4.80 per cent, 5.80 per cent, and 6.97-7.15 per cent for bonds of 3, 5, and 15-year tenure. The 10-year bonds for this set of investors will fetch 6.78 to 7 per cent interest.
