Power Finance Corporation Limited (PFC) NCD Offer.

Economics 15 May 2021 1:40:PM

WhatsApp_Image_2021-01-07_at_3 WhatsApp_Image_2021-01-07_at_3

Investors want investment strategies that, while providing significant returns, control liquidity, and risks. Debentures are long-term financial instruments issued by a firm with a contract to pay fixed interest to a creditor for a defined period. There are two types of debentures, namely convertible and non-convertible debentures (NCD). Non-convertible debentures (NCD) are those that can not be exchanged into equity or bonds. Interest rates for the NCD depend on the company which issues the NCD. Individuals, banking companies, primary dealers, other corporate bodies registered in or incorporated in India and unincorporated bodies may hold NCD investments. 

What is NCD Investment:-

Non-convertible debentures(NCDs) are a financial instrument used for long-term capital raising by businesses. This is achieved by means of a public question. NCDs are a fixed-tenure debt instrument, and individuals who invest in them receive daily interest at a certain rate.

Power Finance Corporation Limited (PFC) NCD offering:-  

Power Finance corporation limited is one of the leading financial institutions in India, focused on the power sector. The Company is a listed government of India (GoI) company and a public financial institution under the Companies Act, 2013. The Company is registered with the RBI as a non- deposit-taking systemically important non-banking financial company (NBFC) and was classified as an Infrastructure Finance Company (IFC) on July 28, 2010.

 PFCs Strategic Role:- 

The Company plays a strategic role in the initiatives of the GoI for the development of the power sector in India and works with GoI agencies, state governments, power sector utilities, other power sector intermediaries, and private sector clients for the development and implementation of policies and for structural and procedural reforms in the power sector in India.

 In addition, Company is involved in various GoI programs relating to the power sector, including acting as the nodal agency for the UMPP program, the IPDS/R-APDRP (now subsumed under the IPDS), and funding DISCOMs under the COVID 19 liquidity package.

PFC provides a comprehensive range of financial products and other services to its clients in the power sector, including services ranging from project conceptualization to the post-commissioning stage, including generation (conventional and renewable), transmission and distribution projects, and related renovation and modernization projects, various forms of fund-based assistance, including long-term project finance, short-term loans, buyers’ lines of credit, underwriting of debt and debt refinancing schemes, various forms of non-fund based assistance including default payment guarantees, credit enhancement guarantees and letters of comfort and various fee-based technical advisory and consultancy services for power sector projects through its wholly-owned subsidiary PFC Consulting Limited.

The focus areas of the Company have been strategically expanded to include projects that represent forward and backward linkages to core power sector projects, including procurement of capital equipment for the power sector, fuel sources for power generation projects, and related infrastructure development. PFC also funds power trading initiatives.

PFC’s primary sources of funds include equity capital, internal resources, and domestic and foreign currency borrowings.

PFC believes that its NBFC and IFC classifications enable it to effectively capitalize on available financing opportunities in the Indian power sector. In addition, as a GoI-owned NBFC, loans made by the Company to central and state entities in the power sector are exempt from the RBI’s Concentration of Credit (exposure) norms that are until March 31, 2022.

The Company was granted the “Navratna” status by the GoI in 2007 and has received an “Excellent” rating from the GoI in each of the fiscal years beginning from Fiscal 2007. The assessment for Fiscal 2020 is ongoing.

Power Finance Corporation Limited (PFC) NCD Issue:- 

Power finance corporation ltd
Secured Redeemable Non-Convertible Debentures (Tranche I)

Issue opening: January 15, 2021
Issue closing: January 29, 2021 

Issue Size: 5000 crore
Rating: AAA by Crisil, Care and ICRA

Face value : Rs. 1,000
Minimum application amount: Rs, 10,000 and in multiples of 1,000 thereafter.
Issuance and trading mode: Dematerialised form only

Specific Terms of Issue :
For category I & II (Institutional & Non-Institutional Investors)
3 Years (Annual) - 4.65%
5 Years (Annual) - 5.65%

10 Years (Quarterly) - 6.63%
10 Years (Annual) - 6.80%
10 Years (Annual) #Floating - Benchmark FIMMDA 10Yr G-Sec (Annualised)+ 55 BPS

15 Years (Quarterly) - 6.78%
15 Years (Annual) - 6.95%

For category III & IV (High Networth (HNI) & Retail Individual investors)
3 Years (Annual) - 4.80%
5 Years (Annual) - 5.80%

10 Years (Quarterly) - 6.82%
10 Years (Annual) - 7.00%
10 Years (Annual) #Floating - Benchmark FIMMDA 10Yr G-Sec (Annualised)+ 80 BPS

15 Years (Quarterly) - 6.97%
15 Years (Annual) - 7.15%

Forms are available.

For more details, kindly get in touch with us at info@geplcapital.com or 022-48934000.

Source:- team GEPLCapital, HDFC

Popular Blogs


5 best stocks to buy in India for short term in 2021.

Want to make a short-term investment in the stock market to earn double-digit returns on your investment? Then this blog is for you. Our analyst Mr.Karan PAi at GEPL Capital has picked ...

Read More

Peak Margin Rule : What changes in new phase for peak margin penalty

With reference to the SEBI circular dated 20th July 2020, Peak Margin has been introduced in the Equity, Commodity & Currency segment from 1st December 2020.  W.e.f  1st June 2021, there ...

Read More

Tata Perpetual Bond, a fixed income opportunity?

The private placement of Tata Motors comes with a coupon of 9.10 percent. The private placement of Tata Motors Finance Ltd (TMFL) comes with a coupon of 9.10 percent. The private placement of ...

Read More
Wildcard SSL