Power Finance Corporation NCD

Power Finance Corporation NCD details

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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 Open15 Jan 2020
Issue Closing29 Jan 2021
Security NamePower Finance Corporation Limited
Security TypeSecured, 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 size10 NCD
Market Lot1 NCD
Credit Rating‘CARE AAA; Stable’ by CARE; ‘CRISIL AAA / Stable’ by CRISIL; and ‘[ICRA]AAA(Stable)’ by ICRA.
Tenor3. 5, 10 and 15 years
Basis of AllotmentFirst Come First Serve Basis
Listing AtBSE

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’s5,000,000

Power Finance Corporation NCD Coupon Rates

Tenure3 Years5 Years10 YearsTen Years10 Years15 Years15 Years
Frequency of Interest PaymentAnnualAnnualQuarterlyAnnualAnnualQuarterlyAnnual
Minimum Application10 NCDs (₹10,000) (across all options of NCDs)
In multiples, of1 NCD after the minimum application
Face Value of NCDs (₹/NCD)₹1,000
Issue Price (₹/NCD)₹1,000
Coupon for Category I and II4.65%5.65%6.63%6.80%Benchmark
10Yr G-Sec
+ 55 BPS
Coupon for Category III and IV4.80%5.80%6.82%7.00%Benchmark
10Yr G-Sec
+ 80 BPS
Redemption Date3 Years5 Years10 YearsTen Y10 Years15 Years15 Y
Effective Yield (% per annum) for Category I and II4.65%5.65%6.79%6.80%6.95%6.95%
Effective Yield (% per annum) for Category III and IV4.80%5.80%6.99%7.00%7.15%7.15%
Put and Call OptionNot 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

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