State-owned Power Finance Corporation (PFC) on Wednesday said it will launch the Rs 5,000 crore-worth issuance of Non Convertible Debentures (NCDs) on July 21.
The power sector lender is also awaiting Reserve Bank of India's nod to set up a subsidiary at the International Financial Services Centre in Gandhinagar.
The issue, part of the Rs 10,000 crore-funding raising plan approved by its board,will have three tranches of 3, 10 and 15 year tenor offering an annualised coupon rate of 7.45 to 7.55 per cent. It will consist of Rs 500 crore of primary issue and a green shoe option for Rs 4,500 crore.
PFC Chairman and Managing Director Parminder Chopra told reporters here that the issue will open on July 21 and close on July 28 with an option of early closure or extension. The debentures will be listed on the BSE.
Three-fourth of the net proceeds of the issue will be utilised for onward lending, financing/refinancing the existing debt, and/or debt servicing and the rest will be used for general corporate purposes.
On the proposed IFSC arm in the Gift City, Chopra said she hopes to launch the arm this fiscal itself, subject to getting the regulatory approvals from the RBI and that is taking time.
"In fact, we have been working on this since last year. We being an NBFC (Non Banking Financial Company), we cannot open branch unit in the IFSC but only launch a subsidiary," she told PTI here.
Asked how an IFSC unit will help the company, which is the largest financier of the power sector, and whether they have loan queries from overseas, she said, "we are just testing the waters".
In fiscal 2023, PFC's consolidated revenue stood at Rs 77,568.30 crore, up from Rs 76,261.66 crore a year ago. Its net income stood at Rs 21,178.6 crore as against Rs 18,768.2 crore in the previous year.
As of March 2023, the company's loan book stood at Rs 4.32 lakh crore. Out of the total amount, Rs 3.2 lakh crore has been lent to state power companies and Rs 73,000 crore to private power companies.
For this period, its outstanding borrowing was at Rs 3.63 lakh crore, out of which 63 per cent were through domestic bonds.
