Power Finance Corporation Limited, is 1 of the top monetary institutions in India, focused on the energy sector will open its Rs 5,000 crore public concern of secured, redeemable Non-Convertible Debentures on January 15, 2021. The NCDs are of face worth of Rs 1,000 every. The Tranche I Issue is scheduled to close on January 29, 2021 with an selection of early closure or extension.
It will be the 1st public concern of NCD to provide selection of applying via UPI Mechanism to retail person investors for an application quantity of up to Rs. 200,000.
The Tranche I Issue provides choices for tenures of 3, 5, 10 and 15 years. The 3-year tenure NCD in Series I will provide a fixed coupon price of 4.65 per cent per annum to 4.80 per cent per annum, when the 5 year tenure NCD in Series II will provide fixed coupon price of 5.65 per cent per annum to 5.80 per cent per annum based on the category of investors.
The 10-year tenure NCDs provides choices of each fixed and floating prices of interest. The fixed coupon price is 6.63 per cent per annum to 7.00 per cent per annum.The floating coupon price, on the other hand, is primarily based on Benchmark FIMMDA 10Yr G-Sec (Annualised) + spread of 55 basis points to 80 basis points, topic to floor and cap price based on the category of investors. The 15-year tenure NCD provides a variety of fixed coupon prices with maximum coupon price of 7.15 per cent per annum. The category IV caters to retail investors with aggregate investment up to Rs 10 lakh.
The minimum application size is for 10 NCDs aggregating to Rs. 10,000 collectively across all series of NCDs and in multiples of One (1) NCD of face worth of Rs. 1000 every thereafter.
The NCDs proposed to be issued below the Issue have been rated ‘CARE AAA; Stable’ by CARE Ratings Ltd, ‘CRISIL AAA / Stable’ by CRISIL Ltd (“CRISIL”) and ‘[ICRA]AAA(Stable)’ by ICRA Ltd. NCDs with these ratings are regarded as to have the highest degree of security concerning timely servicing of monetary obligations and such instruments carry lowest credit danger.
The NCDs supplied are proposed to be listed on BSE Limited. The base Issue size is Rs. 500 crore with an selection to retain more than subscription of up to Rs. 4,500 crore aggregating up to 5,000 crore which is inside the shelf limit of Rs 10,000 crore.