PFC files draft shelf prospectus to raise ₹10,000 crore via NCDs

New Delhi: State-owned Power Finance Corporation (PFC) has filed a draft shelf prospectus to raise ₹10,000 crore through non-convertible debentures (NCDs).

The company filed the prospectus on 6 July with the BSE. The public issue of secured, rated, listed, and redeemable NCDs will have a face value of ₹1,000 each and will be issued in one or more tranches. PFC plans to utilize at least 75% of the net proceeds for onward lending, financing, refinancing existing debt, and debt servicing, while up to 25% will be allocated for general corporate purposes.

The proposed NCDs have AAA/Stable rating by CARE Ratings Limited, AAA/Stable by CRISIL Limited, and AAA by ICRA Limited.

PFC, a maharatna central public sector enterprise (CPSE) and a schedule-A company, operates as a financial institution under the Companies Act of 2013. Registered with the Reserve Bank of India (RBI) as a non-deposit taking systemically important non-banking financial company (NBFC), PFC gained the classification of an infrastructure finance company (IFC) in 2010. Leveraging its NBFC and IFC status, the company effectively seizes financing opportunities in the Indian power sector.

PFC collaborates with various entities including government agencies, state governments, power utilities, intermediaries, and private sector clients to facilitate policy development, structural reforms, and procedural improvements in the Indian power sector. The company aligns its initiatives with the Government of India’s efforts to promote power sector growth.

PFC’s comprehensive portfolio encompasses a range of financial products and services, such as rupee term loans, short-term loans, equipment lease financing, and transitional financing services. These offerings cater to power projects across generation, transmission, and distribution sectors.

The lead managers appointed for the NCD issue are JM Financial Limited, A.K. Capital Services Limited, Nuvama Wealth Management Limited, SMC Capitals Limited, and Trust Investment Advisors Private Limited. KFIN Technologies Limited has been appointed as the registrar, and Beacon Trusteeship Limited as the debenture trustee.

The company’s revenue from operations for the fiscal year 2023 stood at ₹77,568.30 crore, reflecting a 1.71% increase compared to the previous year. Net profit during the same period rose by 12.84% to ₹21,178.59 crore.