Power Finance Corp raises up to Rs 6,100 cr via 20-month, 10-year bonds

Pricing at higher-yield level due to hardening of G-secs

Power Finance Corporation (PFC) has raised Rs 6,100 crore through a blend of medium-term (22 months) and long-term bonds (10-year) for onward lending in the key infrastructure sector.

Bond market sources said being an AAA-rated public sector company, the demand for bonds was healthy. For the 10-year bonds, base issue was of Rs 500 crore with a green shoe option of Rs 2,500 crore. The entire issue was consumed. The coupon for 10-year paper was fixed at 7.57 per cent.

The coupon was fixed at a higher rate, reflecting hardening of yield on government bonds by over 10-basis points (bps)