 "Power Finance Corporation plans to raise Rs 10,000 cr through NCDs")
Power Finance Corporation is planning to raise Rs 10,000 crore through non-convertible debentures, the state-owned company said on Wednesday.
The company said it "has filed a draft shelf prospectus for Rs 10,000 crore non-convertible debentures (NCD) fundraise. The public issue of secured, rated, listed, redeemable NCDs with a face value of Rs 1,000 each aggregate up to Rs 10,000 crore (shelf limit) and will be issued in one or more tranches".
The company filed the prospectus with the BSE on July 6.
Of the net proceeds, at least 75 per cent will be utilised for onward lending, financing/refinancing the existing debt of the company, and/or debt servicing and payment of interest and/or repayment/prepayment of interest and principal of existing borrowings of the company, the Power Finance Corporation (PFC) said.
Up to 25 per cent of the proceeds will be spent for general corporate purposes, it said.
The issue has AAA ratings from all three rating agencies.
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In 2022-23, PFC's revenue from operations rose 1.71 per cent to Rs 77,568.30 crore from which it earned a net income of Rs 21,178.59 crore, up 12.84 per cent.
The portfolio of PFC -- a leading non-banking financial corporation -- includes various financial products and services.
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