Power Finance Corporation Ltd.

State-run utility Power Finance Corporation (PFC) has raised about Rs 4,000 crore in just a few hours on December 01 through a private placement of debt as institutional investors such as mutual funds and insurance firms. The issue was sold out in a few hours. Mutual funds bought lower maturity bonds, while insurance companies and the Employees Provident Fund Organisation (EPFO) bought longer-tenured papers.

The company raised the money by issuing bonds of varying maturities. The three, five and seven-year (taxable) bonds were issued at coupon rates of 9.63%, 9.64% and 9.70% respectively.

The bond offering rated AAA was subscribed quickly by mutual funds, insurance companies, the EPFO, which runs the largest social security scheme in the country, and also some bond traders.

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.