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Power sector Non-Banking Financial Company (NBFC), Power Finance Corporation Ltd. (PFC), has raised $500 million on January 29 through issuance of dollar denominated Bonds with a fixed maturity of May 16, 2031.

This is the longest tenor bond issuance from India since the start of 2021. The bonds have a fixed coupon of 3.35 per cent per annum which was inside the fair value of PFC's secondary bonds.

The order book amounted to nearly $2.55 billion achieving an oversubscription of 5.1 times.

The proceeds from bonds would be utilised in accordance with the external commercial borrowing regulations of the Reserve Bank of India (RBI), including for on-lending to power sector utilities.

Commenting on the bond issuance, Chairman and Managing Director of PFC, R.S. Dhillon, expressed satisfaction that despite the challenging Covid-19 situation being witnessed globally, PFC's bond offer attracted wide participation from international investors.

The deal concluded at very attractive terms which reflects confidence of investors in PFC's business as well as its credit profile and the growth story of Indian power sector, he said.