Power Finance Corp to sell bonds worth $106 bn
08 Jan 2021
2 Min Read
Editorial Team
India's biggest lender to the power sector, Power Finance Corporation (PFC), is set to sell bonds to individual investors in a bid to attract savers who are dissatisfied with deposit rates at a 16-year low.
According to PFC鈥檚 Parminder Chopra, Director (Finance), the company has filed a draft prospectus for a Rs 10,000 crore ($1.4 billion) offering and plans to raise the entire sum in this quarter.
An unprecedented monetary stimulus to help stabilise the pandemic hit economy has brought down rates that households used to get on bank savings, piling up to the challenges in a nation where inflation is persistently high.
The term deposit maturity rate in three years at India's largest financial lender, State Bank of India (SBI), is 5.3%, which is the lowest since September 2004.
Power Finance told media sources that they had previously sold notes to retail investors, which were tax-free infrastructure bonds. The company added that the planned offering would be the company鈥檚 first taxable issuance to individual buyers.
The company hired JM Financial Services, Trust Investment Advisors, Edelweiss Financial Services, and AK Capital Services, as lead managers for the offering.
According to the draft prospectus, the company intends to issue AAA-rated notes in one or more tranches.
India's biggest lender to the power sector, Power Finance Corporation (PFC), is set to sell bonds to individual investors in a bid to attract savers who are dissatisfied with deposit rates at a 16-year low.
According to PFC鈥檚 Parminder Chopra, Director (Finance), the company has filed a draft prospectus for a Rs 10,000 crore ($1.4 billion) offering and plans to raise the entire sum in this quarter.
An unprecedented monetary stimulus to help stabilise the pandemic hit economy has brought down rates that households used to get on bank savings, piling up to the challenges in a nation where inflation is persistently high.
The term deposit maturity rate in three years at India's largest financial lender, State Bank of India (SBI), is 5.3%, which is the lowest since September 2004.
Power Finance told media sources that they had previously sold notes to retail investors, which were tax-free infrastructure bonds. The company added that the planned offering would be the company鈥檚 first taxable issuance to individual buyers.
The company hired JM Financial Services, Trust Investment Advisors, Edelweiss Financial Services, and AK Capital Services, as lead managers for the offering.
According to the draft prospectus, the company intends to issue AAA-rated notes in one or more tranches.
Next Story
RentenPe and Mygate Partner to Transform Rent Payments in India
Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India鈥檚 first Rent Credit Score鈩� platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe鈥檚 payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..
Next Story
Supreme Unveils New Brand Identity to Elevate Lifestyle
Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group鈥檚 refreshed vision to 鈥楨levate Lifestyle鈥�. This brand transformation represents more than a visual refresh鈥攊t marks a strategic shift in the company鈥檚 mission, visual identity and market positioning. The update will be visible across all of Supreme鈥檚 digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..
Next Story
Capri Loans Launches #TarrakiKeHaath Campaign Honouring India鈥檚 Everyday Heroes
Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India 鈥� from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans鈥� long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat鈥檚 economy. Conceptualized by Rediffusion Brand Solutions, the..
