Power Finance Corporation NCD is open for subscription from 15 January 2021 to 29 January 2021. NCD is a good investment option for investors who are planning for a diverse portfolio.
Power Finance Corporation Limited
Incorporate in 1986, Power Finance Corporation Limited (PFC) is one of the leading financial institutions in India. It is focused on the power sector. PFC works with Government of India (GoI) agencies, state governments, power sector utilities, other power sector intermediaries, and private sector clients for the development and implementation of policies and structural and procedural reforms in the power sector in India. Power Finance Corporation is registered with the RBI as a non-deposit taking systemically important NBFC. Power Finance Corporation was granted the “Navratna” status by the GoI in 2007. PFC provides a range of financial products and other services including:
- Services ranging from project conceptualization to the post-commissioning stage, including generation (conventional and renewable), transmission and distribution projects, and related renovation and modernization projects;
- Various forms of fund-based assistance, including long-term project finance, short-term loans, buyers’ lines of credit, underwriting of debt, and debt refinancing schemes;
- Various forms of non-fund based assistance including default payment guarantees, credit enhancement guarantees, and letters of comfort; and
- Various fee-based technical advisory and consultancy services for power sector projects through our wholly-owned subsidiary PFC Consulting Limited.
Objectives of the Issue
- For the purpose of 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).
- General corporate purposes.
Power Finance Corporation NCD details
| Issue Open | 15 Jan 2020 |
| Issue Closing | 29 Jan 2021 |
| Security Name | Power Finance Corporation Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Base Issue Size | ₹ 500Crores |
| Issue Size (Shelf) | ₹ 4,500 Crores |
| Total Issue size | ₹5000 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 for each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Credit Rating | ‘CARE AAA; Stable’ by CARE; ‘CRISIL AAA / Stable’ by CRISIL; and ‘[ICRA]AAA(Stable)’ by ICRA. |
| Tenor | 3. 5, 10 and 15 years |
| Basis of Allotment | First Come First Serve Basis |
| Listing At | BSE |
NCD Allocation Ratio by category
| Category | NCD’s Allocated |
|---|---|
| Category 1 (QIB) | 10% |
| Category 2 (NII) | 10% |
| Category 3 (HNI) | 40% |
| Category 4 (RII) | 40% |
NCD’s Offered by category
| Category | NCD’s Reserved |
|---|---|
| Category 1 (QIB) | 500,000 |
| Category 2 (NII) | 500,000 |
| Category 3 (HNI) | 2,000,000 |
| Category 4 (RII) | 2,000,000 |
| Total NCD’s | 5,000,000 |
Power Finance Corporation NCD Coupon Rates
| Tenure | 3 Years | 5 Years | 10 Years | Ten Years | 10 Years | 15 Years | 15 Years |
|---|---|---|---|---|---|---|---|
| Nature | Secured | ||||||
| Series | I | II | III | IV | V | VI | VII |
| Frequency of Interest Payment | Annual | Annual | Quarterly | Annual | Annual | Quarterly | Annual |
| Minimum Application | 10 NCDs (₹10,000) (across all options of NCDs) | ||||||
| In multiples, of | 1 NCD after the minimum application | ||||||
| Face Value of NCDs (₹/NCD) | ₹1,000 | ||||||
| Issue Price (₹/NCD) | ₹1,000 | ||||||
| Coupon for Category I and II | 4.65% | 5.65% | 6.63% | 6.80% | Benchmark FIMMDA 10Yr G-Sec (Annualised) + 55 BPS | 6.78% | 6.95% |
| Coupon for Category III and IV | 4.80% | 5.80% | 6.82% | 7.00% | Benchmark FIMMDA 10Yr G-Sec (Annualised) + 80 BPS | 6.97% | 7.15% |
| Redemption Date | 3 Years | 5 Years | 10 Years | Ten Y | 10 Years | 15 Years | 15 Y |
| Effective Yield (% per annum) for Category I and II | 4.65% | 5.65% | 6.79% | 6.80% | – | 6.95% | 6.95% |
| Effective Yield (% per annum) for Category III and IV | 4.80% | 5.80% | 6.99% | 7.00% | – | 7.15% | 7.15% |
| Put and Call Option | Not Applicable |
Company Promoters
- The President of India, acting through and represented by Ministry of Power, Government of India.
NCD Lead Managers
- A K Capital Services Ltd
- Edelweiss Financial Services Ltd
- JM Financial Consultants Pvt Ltd
- Trust Investment Advisors Pvt Ltd
NCD Registrar
KFintech Pvt Ltd Selenium Building, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.
Phone: 1-800-3454001
Email: pfc.ncd2020@kfintech.com
Website: https://karisma.kfintech.com/
Company Contact Information
Power Finance Corporation Limited
Urjanidhi, 1, Barakhamba Lane,
Connaught Place,
New Delhi 110 001
Phone: +91 11 2345 6000
Email: publicissue20@pfcindia.com
Website: https://www.pfcindia.com/
Final Thoughts
Non Convertible Debentures (NCD) is a better investment option for those who are looking for a diversified portfolio. investing in Power Finance Corporation NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing