Power Finance Corp raises $1 bn from global market through issuance of bonds; shares decline by over 1%

This was PFC's first issuance in the international market after acquiring the government's shareholding in REC, the company said in a BSE filing.

Press Trust of India June 12, 2019 18:03:55 IST
Power Finance Corp raises $1 bn from global market through issuance of bonds; shares decline by over 1%
  • The issuance attracted a strong and diversified order book

  • In March 2019, PFC completed the acquisition of the majority stake in REC

  • Shares of the company dropped 1.2% to close at Rs 132 on BSE

New Delhi: Power Finance Corporation (PFC), a state-run NBFC, said on Wednesday it has raised $1 billion (around 6,940 crore) through issuance of bonds in the international market.

This was PFC's first issuance in the international market after acquiring the government's shareholding in REC, the company said in a BSE filing.

Power Finance Corp raises 1 bn from global market through issuance of bonds shares decline by over 1

Representational image. News 18.

The issuance attracted a strong and diversified order book indicating investor's confidence towards PFC's differentiated credit despite volatile market conditions and concerns over Indian NBFI sector, it mentioned.

PFC finances power sector projects and its main source of revenue is interest income on loans.

"PFC, a government-owned non-banking financial company (NBFC), has successfully tapped the international market and raised $1 billion through Reg - S bonds in one go," the company said in the filing.

In March 2019, PFC completed the acquisition of the majority stake in REC Ltd by transferring Rs 14,500 crore to the government.

Chairman and Managing Director, PFC, Rajeev Shanna said, "The transaction establishes PFC status as leading NBFI in India having priced its first dual and largest USD bonds transaction for government-owned Indian NBFC. This is also PFC's first USD issuance in the five-year tenor.

"The successful completion of the deal underscores investor's continued confidence in PFC post-acquisition of REC," he said.

Shares of the company dropped 1.2 percent to close at Rs 132 on BSE.

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