Public Issue of Debentures amounting to Rs 5,000 crores by Power Finance Corporation Limited opens on January 15, 2021

·         Debentures of Power Finance Corporation, offers coupon rates ranging upto 7.15% p.a.^$ across maturities

·         Rs. 500 crores base Issue size; option to retain oversubscription up to Rs. 4,500 crores aggregating upto Rs. 5000 crores, which is within the shelf limit of Rs 10,000 crores

·         Credit Ratings: ‘CARE AAA; Stable’ by CARE Ratings Limited (“CARE”); ‘CRISIL AAA / Stable’ by CRISIL Limited (“CRISIL”); and ‘[ICRA]AAA(Stable)’ by ICRA Limited (“ICRA”)

·         Allotment on first-come, first-served basis

·         NCDs only in dematerialized form

·         First public issue of NCD to offer option of applying through UPI Mechanism to retail individual investors for an application amount of up to Rs. 200,000/-

Mumbai, January 14, 2021 (GNI): Power Finance Corporation Limited, is one of the leading financial institutions in India, focused on the power sector will open its Rs 5,000 crores public issue of secured, redeemable Non-Convertible Debentures on January 15, 2021. The base Issue size is Rs. 500 crores with an option to retain oversubscription of up to Rs. 4,500 crores aggregating up to 5,000 crores which is within the shelf limit of Rs 10,000 crores. The NCDs are of face value of Rs 1,000 each. The Tranche I Issue is scheduled to close on January 29, 2021 with an option of early closure or extension as decided by PFC’s Board of Directors or a duly constituted committee thereof^@.

The Tranche I Issue offers options for tenures of 3, 5, 10 and 15 years. The 3-year tenure NCD in Series I will offer a fixed coupon rate of 4.65% p.a to 4.80% p.a., while the 5 year tenure NCD in Series II will offer fixed coupon rate of 5.65% p.a. to 5.80% p.a. depending on the category of investors. The 10-year tenure NCDs offers options of both fixed and floating rates of interest. The fixed coupon rate is 6.63%p.a. to 7.00% p.a. The floating coupon rate, on the other hand, is based on Benchmark FIMMDA 10Yr G-Sec (Annualised) + spread of 55 basis points to 80 basis points, subject to floor and cap rate depending on the category of investors. The 15-year tenure NCD offers a range of fixed coupon rates with maximum coupon rate of 7.15% p.a.

The minimum application size is for 10 NCDs aggregating to Rs. 10,000 collectively across all series of NCDs and in multiples of One (1) NCD of face value of Rs. 1000 each thereafter.

The NCDs offered through the Shelf Prospectus and the Tranche I Prospectus both dated January 11, 2021 are proposed to be listed on BSE Limited. The Lead Managers to the Issue are Trust Investment Advisors Private Limited, A. K. Capital Services Limited, Edelweiss Financial Services Limited and JM Financial Limited.

Ratings by CARE, CRISIL & ICRA indicate ‘High degree of safety’

The NCDs proposed to be issued under the Issue have been rated ‘CARE AAA; Stable’ by CARE Ratings Ltd, ‘CRISIL AAA / Stable’ by CRISIL Ltd (“CRISIL”); and ‘[ICRA]AAA(Stable)’ by ICRA Ltd. NCDs with these ratings are considered to have the highest degree of safety regarding timely servicing of financial obligations and such instruments carry lowest credit risk.

Key Terms of the Issue Structure:

Issue Structure
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
Tenor	3 Years	5 Years	10 Years	10 Years	10 Years	15 Years	15 Years
Coupon (Per cent.) for category I & II	4.65%	5.65%	6.63%	6.80%	Benchmark FIMMDA 10Yr G-Sec (Annualised)+ 55 BPS	6.78%	6.95%
Coupon (Per cent.) for category III & IV	4.80%	5.80%	6.82%	7.00%	Benchmark FIMMDA 10Yr G-Sec (Annualised) + 80 BPS	6.97%	7.15%
Effective Yield (per cent. Per annum) for category I & II	4.65%	5.65%	6.79%	6.80%	–	6.95%	6.95%
Effective Yield (per cent. Per annum) for category III & IV	4.80%	5.80%	6.99%	7.00%	–	7.15%	7.15%
Put and Call Option	Not Applicable
Redemption Amount (Rs. Per NCD	Rs. 1000.00	Rs. 1000.00	Rs. 1000.00	Rs. 1000.00	Rs. 1000.00	Rs. 1000.00	Rs. 1000.00
Redemption Date (from the Deemed Date of Allotment)	3 Years	5 Years	10 Years	10 Years	10 Years	15 Years	15 Years
Minimum Application	Rs. 10,000 (10 NCDs) across all Series collectively
In multiples thereafter	Rs. 1,000 (1 NCD)
Face Value / Issue Price (Rs./ NCD)	Rs. 1,000 (1 NCD)
Mode of Interest Payments	Through various payments available.
Default Series	Series IV

# G-sec 10 Yr (annualized) is referred to as FIMMDA 10Yr G-sec benchmark published by FIMMDA Reference computed on an annualised basis as computed by FIMMDA.

# The effective coupon will be subject to a floor rate of 5.80% p.a. and cap rate of 7.30% p.a. for Category I & II Investors and floor rate of 6.00% p.a. and cap rate of 7.50% p.a. for Category III &IV Investors.

* The Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated their choice of the relevant NCD Series.

The Prospectus dated January 11, 2021 is available on the website of the Company at www.pfcindia.com, on the website of BSE at www.bseindia.com, on the website of the lead managers at www.trustgroup.in, www.akgroup.co.in, www.edelweissfin.com and www.jmfl.com, and on the website of SEBI at www.sebi.gov.in.