Power Finance Corporation Ltd.

Power Finance Corporation (PFC) is expecting to raise more than Rs 100 crore through the tax-free bond issue, which will close on March 15, 2013. Till March 8, 2013, subscriptions were reported to be of Rs 68 crore, more than 90% of which came from the retail segment. The company is planning to utilize this fund for lending, debt servicing and working capital requirements.

The bonds, valued at Rs 1,000 each, are secured, redeemable, non-convertible debentures and the coupon rate is 7.38 per cent for retail investors and 7.54 per cent for a Hindu Undivided Family (HUF), while other categories have been given rates of 6.88 per cent and 7.04 per cent for 10-15 years.

Recently in December 2012, the entity had raised Rs 700 crore in the first tranche of tax-free bonds. In 2012-13, public sector financer has been authorized to issue tax-free bonds up to Rs 5,000 crore and till date, the company has raised Rs 1,100 crore.