Power Finance Corp to launch ₹5,000 crore NCD issue, how investors can apply?|Jagran Business

Maharatna authority PSU Power Finance Corporation (PFC) said on Wednesday that it will issue Rs 5,000 crore in Non-Convertible Debentures (NCDs) on July 21. The power sector lender is also awaiting approval from the Reserve Bank of India (RBI) to establish a subsidiary at Gandhinagar's International Financial Services Centre.

Issue will be divided into three tranches

The issue, which is part of the Rs 10,000 crore fundraising plan approved by its board, will be divided into three tranches of three, ten, and fifteen years with annualised coupon rates ranging from 7.45 to 7.55 percent. It will consist of a Rs 500 crore primary issue and a Rs 4,500 crore green shoe option. 

The minimal application size would be 10,000 (10 NCDs), followed by multiples of 1,000. This issue includes maturity or tenure choices for NCDs of three years, ten years, and fifteen years, with yearly coupon payments available across series I, II, and III, respectively. The annual effective yield for NCD holders varies between 7.44% and 7.54%.