PFC – First CPSU to tap USD Bonds under RBI Swap Window

Power Finance Corporation Ltd. (PFC) becomes the first Central Public Sector Undertaking (CPSU) and the first in NBFC space to successfully tap the international bond market following the announcement of Swap facility by the Reserve Bank of India (RBI) in its latest Monetary Policy Statement. PFC, a Maharatna CPSU and India’s leading NBFC in the power sector, has successfully raised USD 300 million Senior Unsecured USD-denominated Bond issuance under the Reg S route with a tenor of 5 years, priced at 105 basis points over the benchmark five-year U.S. Treasury for a fixed coupon of 5.32% p.a. The issue saw a strong investor demand, attracting active and wider participation from investors across European and Asian markets. The issue is rated Baa3 by Moody’s; BBB- by Fitch and BBB+ by CareEdge. The proceeds from bonds will be used for on-lending to power and infrastructure sector and general corporate purposes. Commenting on the success of the bond issuance, Smt. Parminder Chopra, Chairman and Managing Director of PFC, states that I am happy that PFC is the first CPSU to tap the international bond market following the introduction of the swap facility by RBI. This issuance supports the Government of India's broader objective to attract foreign capital into the country. The deal reflects confidence of investors in PFC’s business as well as its credit profile and the growth story of Indian Power sector.