Power Finance Corporation (PFC) said on Monday that it has filed the Tranche I prospectus for public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs) of up to ₹5,000 crore.
The prospectus, dated January 9, is for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of ₹1,000 each (except in case of zero coupon NCD, face value shall be ₹1,00,000 each), PFC said.
The base issue size is ₹500 crore with a green shoe option of up to ₹4,500 crore, aggregating up to ₹5,000 crore (Tranche I issue), which is within the shelf limit of ₹10,000 crore (issue), it added.
The Tranche I issue opens on January 16 and closes on January 30, with an option of early closure or extension. The NCDs are proposed to be listed on National Stock Exchange of India (NSE), with NSE being the designated stock exchange for the issue.
The minimum application size would be ₹10,000 (10 NCDs) and thereafter in multiples of ₹1,000 (1 NCD) thereof. Except in case of Series III NCDs (zero coupon NCD), the minimum application shall be 1 NCD and in multiple of 1 NCD thereafter.
This issue has maturity/tenure options of 5 years, 10 years and 15 years for NCDs with annual coupon payment being offered across series I, II, and IV, respectively. Effective yield for NCD holders in various categories ranges from 6.85 per cent to 7.30 per cent per annum.
Out of the net proceeds of the Tranche I issue, at least 75 per cent shall be utilised for the purpose of onward lending, financing/refinancing the existing indebtedness of the company, and/or debt servicing (payment of interest and/or repayment/prepayment of interest and principal of existing borrowings of the company).
Besides, up to 25 per cent of the proceeds will be utilised for general corporate purposes. The funds raised from the issuance of zero coupon NCDs shall be utilised towards the purpose of onward lending, and shall not be used for any other purpose.