Power Finance Corporation Limited NCD Details

Power Finance Corporation Limited NCD Details

Power Finance Corporation Limited NCD

Power Finance Corporation Limited is one of the leading financial institutions in India. The firm has worked with the government of India agencies, state governments, and power sector utilities, intermediaries, and private sector clients. The firm has launched an NCD. The name of the NCD is Power Finance Corporation Limited NCD. The subscription period of the issue is from 15th January 2021 to 18th January 2021.

Features of New NCD:

Issue Open Jan 15th, 2021 – Jan 18th, 2021
Security Name Power Finance Corporation Limited
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base) Rs. 500.00 crores
Shelf (issue size) Rs. 4,500.00 crores
Issue Price Rs. 1,000 per NCD
Face Value Rs. 1,000 each NCD
Minimum Lot Size 10 NCD
Market Lot 1 NCD
Listing At BSE
Credit Rating ‘CARE AAA; Stable’ by CARE; ‘CRISIL AAA / Stable ‘ by CRISIL; and ‘[ ICRA] AAA (stable)’ by ICRA
Tenor 3.5, 10, and 15 years
Series I to VII
Payment
Basis of Allotment First Come First Serve Basis

The size of the base issue is aggregating up to Rs. 500 crores by a face value of Rs. 1,000 each and Shelf issue aggregating up to Rs. 4,500 crores. As per the reports, the price band of the issue is fixed at Rs. 1,000 per NCD with a face value of Rs. 1,000 each bond.

Further, the minimum lot size of the issue is 10 NCD bonds and the market lot of the issue is 1 NCD. Besides, the issued bonds to be listed on BSE Limited.

The Objective of the NCDs:

According to the source, the main object of the issue is for the purpose of onward lending and repayment of interest and principal of existing debts of the company. The last one is for general corporate purposes.

Coupon Rates:

 Series  Type  Tenure  Frequency of Interest Payment Coupon for Category I and II Coupon for Category III and IV Effective Yield (% per annum) for Category I and II Effective Yield (% per annum) for Category III and IV Redemption Amount (Rs/NCD)
 I  Secured  3Years  Annual 4.65% 4.80% 4.65% 4.65% 1,000
 II  5 Years  Yearly 5.65% 5.80% 5.65% 5.80% 1,000
 III  10 Years Quarterly 6.63% 6.82% 6.79% 6.99% Rs. 1,000
 IV  10 Years Annual 6.80% 7.00% 6.80% 7.00% 1,000
 V  10 Years  Annual Benchmark
FIMMDA
10Yr G-Sec
(Annualized)
+ 55 BPS
Benchmark
FIMMDA
10Yr G-Sec
(Annualized)
+ 80 BPS
1,000
 VI  15 Years Quarterly 6.78%  6.97% 6.95% 7.15% Rs. 1,000
 VII  15 Years Yearly  6.95% 7.15% 6.95% 7.15% 1,000

The issue has been rated as ‘CARE AAA; Stable’ by CARE; ‘CRISIL AAA / Stable ‘ by CRISIL; and ‘[ICRA] AAA (Stable)’ by ICRA. The proposed NCDs prepared to be listed on the Bombay Stock Exchange. 

As per the scheme information document, the issue reserved for QIB, NII, RII, and HNI investors.

However, 5,00,000 bonds of the issue reserved for QIBs and NIIs each. The remaining 40,00,000 bonds reserved for retail individual investors and high-net-worth individual investors.

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Please read the offer document carefully and consult your investment adviser before investing.

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