Power Finance Corp to sell bonds worth $106 bn
POWER & RENEWABLE ENERGY

Power Finance Corp to sell bonds worth $106 bn

India's biggest lender to the power sector, Power Finance Corporation (PFC), is set to sell bonds to individual investors in a bid to attract savers who are dissatisfied with deposit rates at a 16-year low.

According to PFC’s Parminder Chopra, Director (Finance), the company has filed a draft prospectus for a Rs 10,000 crore ($1.4 billion) offering and plans to raise the entire sum in this quarter.

An unprecedented monetary stimulus to help stabilise the pandemic hit economy has brought down rates that households used to get on bank savings, piling up to the challenges in a nation where inflation is persistently high.

The term deposit maturity rate in three years at India's largest financial lender, State Bank of India (SBI), is 5.3%, which is the lowest since September 2004.

Power Finance told media sources that they had previously sold notes to retail investors, which were tax-free infrastructure bonds. The company added that the planned offering would be the company’s first taxable issuance to individual buyers.

The company hired JM Financial Services, Trust Investment Advisors, Edelweiss Financial Services, and AK Capital Services, as lead managers for the offering.

According to the draft prospectus, the company intends to issue AAA-rated notes in one or more tranches.

India's biggest lender to the power sector, Power Finance Corporation (PFC), is set to sell bonds to individual investors in a bid to attract savers who are dissatisfied with deposit rates at a 16-year low. According to PFC’s Parminder Chopra, Director (Finance), the company has filed a draft prospectus for a Rs 10,000 crore ($1.4 billion) offering and plans to raise the entire sum in this quarter. An unprecedented monetary stimulus to help stabilise the pandemic hit economy has brought down rates that households used to get on bank savings, piling up to the challenges in a nation where inflation is persistently high. The term deposit maturity rate in three years at India's largest financial lender, State Bank of India (SBI), is 5.3%, which is the lowest since September 2004. Power Finance told media sources that they had previously sold notes to retail investors, which were tax-free infrastructure bonds. The company added that the planned offering would be the company’s first taxable issuance to individual buyers. The company hired JM Financial Services, Trust Investment Advisors, Edelweiss Financial Services, and AK Capital Services, as lead managers for the offering. According to the draft prospectus, the company intends to issue AAA-rated notes in one or more tranches.

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?