Power Finance Corporations taps financial markets to raise Rs 5,000 crore through NCD
Public issue of non-convertible debentures (NCD) opened on January 15, 2020 to raise Rs 5,000 crore. The NCDs are rated AAA rated by leading credit rating agencies such as CRISIL, CARE and ICRA. The NCD will be issued in dematerialized form on first come first served basis. The minimum application size is 10 NCDs, aggregating to Rs 10,000 collectively across all series of NCDs and in multiples of One NCD of face value of Rs 1000 each thereafter.
There are seven different options investors have to choose from while investing in these NCD. They are as follows:
| Series | I | II | III | IV | V* | VI | VII |
| Interest type | Fixed | Fixed | Fixed | Fixed | Floating | Fixed | Fixed |
| Frequency of interest payment | Annual | Annual | Quarterly | Annual | Annual | Quarterly | Annual |
| Tenure (In Years) | 3 | 5 | 10 | 10 | 10 | 15 | 15 |
| Coupon (%) | 4.8 | 5.8 | 6.82 | 7 | Benchmark FIMMDA 10Yr G-Sec (Annualised) + 80 BPS | 6.97 | 7.15 |
| Yield (%) | 4.8 | 5.8 | 6.99 | 7 | – | 7.15 | 7.15 |
The NCD will be listed on the BSE and there is no put or call option embedded in these NCD. These being listed NCD, tax on interest paid will not be deducted at source.