State-owned Power Finance Corporation (PFC) has announced the launch of its first Rs 5,000 crore taxable bond issue for individual buyers which will open today, January 15, 2021. The company also said that ‘she would come out with other problems to come. RS Dhillon, CMD of PFC, spoke to CNBC-TV18 discussed this.
“To increase investor appetite, we have kept the three to fifteen year mandate for the bond issue. The rationale is to capture all investors across the spectrum and we have filed the prospectus to raise around Rs 10,000 crore, or around 10% of our annual borrowing. For a larger stake, we kept the first installment of around Rs 5,000 crore, including the Greenshoe option. If the response is satisfactory, we will exploit the market again for the balance of Rs 5,000 crore, ”he said.
“We have a strategy of diversifying our borrowings and we are also exploring the issuance of bonds on the international market. Depending on the additional requirements, we will tap private placement bonds and term loans in the market. For a wider stake in terms of diversification, we opted for this segment of retail tax obligations. This will create a new chapter in PFC’s fundraising history and will open a new borrowing window for our diverse lender record, ”he added.
For the full interview, watch the video