Whalesbook
PFC Launches Largest Retail Bond Offering in Nearly Eight Years
Power Finance Corp (PFC) is poised to launch India's largest retail debt issuance in nearly eight years, aiming to raise as much as 50 billion rupees ($554.23 million). The issue, detailed in a term-sheet, has a base size of 5 billion rupees with a substantial greenshoe option of 45 billion rupees.
Record Scale for Public Bond Sale
Should PFC successfully raise the full target amount, this would represent the largest public bond offering since May 2018, according to data from the Securities and Exchange Board of India. The state-run entity's move signals robust investor appetite for corporate debt instruments.
Diverse Investment Options
The bonds will mature in 5, 10, 10 years and 1 month, and 15 years. Subscription opens on Friday, January 16, 2026, and will close on January 30, 2026. PFC is offering an annual coupon of 6.85% for five-year bonds to institutional investors and corporates. Ten-year and 15-year tenors will offer 7.00% and 7.05% respectively.
Enhanced Returns for Retail Investors
High-net-worth individuals and retail investors can expect additional benefits. HNIs will receive an extra 5, 10, and 15 basis points for the five, 10, and 15-year papers, respectively. Retail investors will see annual coupons of 7.00%, 7.20%, and 7.30% for the five, 10, and 15-year bonds, respectively.
Zero-Coupon and Maturity Payment Options
PFC is also providing a zero-coupon option for investors with a 10-year and 1-month maturity, yielding 6.80% for institutions, 6.85% for HNIs, and 6.95% for retailers. A fifth option, a 15-year paper with direct payment at maturity, offers yields of 7.05% for institutions and companies, and 7.20% and 7.30% for HNIs and retail investors.
High Ratings and Market Return
This marks PFC's first public bond issue in 30 months. The notes carry a top-tier AAA rating from CRISIL, CARE, and ICRA, underscoring their low-risk profile. AK Capital Services, Tip Sons Consultancy Services, Nuvama Wealth Management, and Trust Investment Advisors are managing the issuance.