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PFC Launches Major NCD Offering
Power Finance Corporation (PFC) initiated its third public issue of secured, redeemable non-convertible debentures on Thursday, signaling a significant capital-raising effort. Chairperson and Managing Director Parminder Chopra stated that the strong investor appetite for its prior bond offerings reflects a "clear vote of confidence" in the Indian power sector.
Capitalizing on Sector Strength
PFC plans to secure up to ₹5,000 crore from this public NCD issue, its first such offering in nearly 30 months. The base size is ₹500 crore, with an option to retain oversubscriptions. This move comes as the company seeks to fuel the ongoing transition and expansion within India's fundamental growth pillar.
Innovative Bond Structures
The public NCD issue, which opens for subscription on January 16 and closes on January 30, marks a significant debut. It is the company's third public offering and notably the first zero-coupon public bond issuance by a Public Sector Undertaking (PSU) this calendar year. Previous PFC NCD issues were oversubscribed by more than five times, according to Chopra.
Investor Flexibility and Returns
Multiple series are available, offering tenures of 5, 10, and 15 years. A unique zero-coupon bond option is structured to potentially double an investment over a decade, with returns taxed as long-term capital gains. Other options provide cumulative interest, with investments capable of growing nearly threefold within 15 years, catering to diverse retail and institutional investor needs.
Financial Underpinnings
Chopra emphasized PFC's substantial financial footing, noting it has financed approximately 50% of India's installed power capacity. The company’s loan asset book stood at ₹5.61 lakh crore as of September 2025, and it reported a profit of close to ₹8,900 crore in the first half of the current fiscal year, demonstrating resilience and a long-term vision.