Power Finance Corporation (PFC), a public sector listed company that finances power infrastructure projects, is set to raise ₹5000 crore from the debt capital market to refinance existing debt and further lend.
PFC announced that the base issue would be ₹500 crore with an option to raise the remaining ₹4500 crore later. The public debt issue consists of secured, taxable, redeemable, non-convertible debentures (NCDs) of face value of ₹1,000 each. Each zero coupon debenture has a face value of ₹1 lakh. NCDs have been rated AAA by credit rating agencies. The NCD will be listed on the National Stock Exchange (NSE).
The minimum application size of the bonds is ₹10,000 – lots of 10 NCDs – and thereafter in multiples of Rs. His 1,000. This applies only to Series I, II and IV bonds. Series III are zero coupon bonds, which can be purchased in lots of one. .Series one matures in five years, series two in 10 years, series three in 121 months, followed by series four and five in 15 years. Coupon rates are the fixed interest that holders will receive for the bond. As bond values or prices fall, the effective yield, which is the real return new investors receive if the bond holds out until maturity, increases. The coupon rates themselves do not change. The effective yield for NCD holders across different categories ranges from 6.85% to 7.30% per annum. Investors can apply for loan issuance between January 16 and January 30, 2026.
published – January 12, 2026 09:34 PM IST
