PFC Secures USD 300 Million via Floating Rate Bonds

The Power Finance Corporation (PFC) has successfully raised USD 300 million through the issuance of floating rate bonds, marking a significant milestone in the company’s financial journey.

PFC Secures USD 300 Million via Floating Rate Bonds

The bonds, which are due to mature in July 2029, feature a coupon of 0/N SOFR + 110 bps per annum payable quarterly in arrears. The settlement date for the Notes is expected to be 16th July 2026.

The issuance of these Notes is in line with the external commercial borrowing guidelines of the Reserve Bank of India (RBI), as per the company’s exchange filing.

Key Features of the Floating Rate Bonds

The Notes represent direct, unconditional and unsecured obligations of the PFC and will rank pari passu among themselves and all other unsecured obligations of the Issuer.

The bonds will be listed on NSE IFSC and India INX, marking a significant step towards increasing transparency and liquidity in the market.

Market Impact and Details

• The PFC has priced a transaction of USD 300,000,000 Floating Rate Notes due 2029 under its USD 8,000,000,000 Global Medium Term Note Programme.
• The Notes will mature in July 2029 and will provide payments in US Dollars.
• The principal and interest payments will be made in US Dollars, unless previously redeemed pursuant to the terms and conditions of the Notes.

Key Takeaways

• The PFC has successfully raised USD 300 million through the issuance of floating rate bonds.
• The bonds feature a coupon of 0/N SOFR + 110 bps per annum payable quarterly in arrears.
• The Notes will be listed on NSE IFSC and India INX, marking a significant step towards increasing transparency and liquidity in the market.

FAQs

What is the settlement date for the Notes?

The settlement date for the Notes is expected to be 16th July 2026.

What is the maturity date for the Notes?

The Notes will mature in July 2029, unless previously redeemed pursuant to the terms and conditions of the Notes.

Will the principal and interest payments be made in US Dollars?

Yes, the principal and interest payments will be made in US Dollars, unless previously redeemed pursuant to the terms and conditions of the Notes.

Conclusion

The successful issuance of floating rate bonds by the PFC marks a significant milestone in the company’s financial journey. The company’s ability to raise USD 300 million through this issuance demonstrates its strong financial health and ability to access international capital markets.

We expect the PFC to continue to play a key role in the Indian financial sector, and we will be closely monitoring its future developments.

Investors looking to tap into the growing Indian economy may want to consider investing in the PFC or other companies in the financial sector.