Power Finance Corporation Ltd.

State-run lending agency, Power Finance Corporation (PFC), will be launching tax free bond issue to garner up to Rs 100 crore. The issue which will open from February 18, 2013 will close on March 15, 2013.

The bond issue would be for a period of 10-15 years, offering an interest rate between 6.88 per cent and 7.54 per cent. The bonds are proposed to be listed on the BSE. The company will utilize these funds for lending purposes, debt servicing and working capital requirements.

Lead Managers to the Issue are ICICI Securities, A. K. Capital Services, Axis Capital, IL & FS Trust, Kotak Mahindra Capital, SBI Capital Markets, MCS.

The proposed issue is part of company’s plan to garner Rs 5,000 crore by way of issuing tax-free securities in the current fiscal (2012-13). Of the total target, Rs 1,110 crore has already been raised. Ministry of Finance has authorised PFC to raise the bonds aggregating to Rs 5,000 crore in fiscal 2013 out of which it has raised an amount of Rs 410 crore on a private placement basis. Additionally, it raised Rs 699.75 crore in December.

PFC provides large range of financial products and services like project term loan, lease financing, direct discounting of bills, short term loan, and consultancy services for various power projects in generation, transmission, distribution sector as well as for renovation and modernization of existing power projects.