The public issue of secured, rated, listed, redeemable non-convertible debentures of face value of Rs 1000 each aggregating up to Rs 10,000 crore (Shelf Limit) and will be issued in one or more tranches.
The company filed the prospectus on Thursday, July 6 with the Bombay Stock Exchange (BSE).
“The net proceeds of the issue, at least 75% shall be utilised for the purpose of onward lending, financing / refinancing the existing indebtedness of the company, and/or debt servicing and payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company and up to 25% for general corporate purposes,” the company said in a press statement.
Credit rating for the proposed NCDs is CARE AAA/Stable by CARE Ratings Limited, CRISIL AAA/Stable by CRISIL Limited and ICRA AAA by ICRA Limited.
Power Finance Corporation collaborates with various entities such as government agencies, state governments, power utilities, intermediaries, and private sector clients to facilitate the development and implementation of policies, as well as structural and procedural reforms in the Indian power sector.
In recent years, the company has strategically expanded its focus to include projects that have interconnections with core power sector initiatives. This includes activities such as procuring capital equipment for the power sector, securing fuel sources for power generation projects, and participating in related infrastructure development.Power Finance Corporation also provides funding for power trading ventures. Its primary sources of funding consist of equity capital, internal resources, and domestic and foreign currency borrowings.
PFC’s involvement extends to acting as the nodal agency for programs such as the Revamped Distribution Sector Scheme (RDSS), Ultra Mega Power Projects (UMPPs), Integrated Power Development Scheme (IPDS), and serving as the bid process coordinator for Independent Transmission Projects (ITPs).
Additionally, it is engaged in the DISCOM Liquidity Package under the Atmanirbhar Bharat initiative and adheres to the Late Payment Surcharge (LPS) Rules of 2022.
The company’s clientele primarily comprises central power utilities, state power utilities, private power sector utilities (including independent power producers), joint sector power utilities, and power equipment manufacturers.
For the fiscal year 2023, the company’s revenue from operations increased 1.71% to Rs 77,568.30 crore against Rs 76,261.66 crore a year ago on the back of increase in interest income on loans and other operating income. Net profit for the period increased 12.84% to Rs 21,178.59 crore as against Rs 18,768.21 crore last year.
Lead managers appointed to the 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 is the registrar and Beacon Trusteeship Limited is Debenture Trustee to the issue. The NCDs are proposed to be listed on BSE Limited (“BSE”) with BSE as the Designated Stock Exchange.
