Power Finance Corporation raises $500 million via notes

State-owned power giant Power Finance Corporation (PFC) has raised $500 million (Rs 3,651 crore) by way of issuance of notes (bonds) under its $5 billion Global Medium Term Note Programme.

"PFC launched issuance of $500,000,000 3.35 percent notes due 2031 under the $5,000,000,000 Global Medium Term Note Programme," the company said in a regulatory filing.

The notes have been priced on January 21, 2021 and carry a coupon of 3.35 per cent per annum. The settlement date for the notes is expected to be January 29, 2021. Unless earlier redeemed pursuant to the terms and conditions of the Notes, the same will mature on May 16, 2031 and principal and interest payments will be made in US Dollars.

The notes represent direct, unconditional and unsecured obligations of the PFC and will rank pari passu among themselves and all other unsecured obligations of the issuer. The notes will be listed on the Singapore Exchange Securities Trading Limited, NSE IFSC and India INX.

The net proceeds from the issuance of these notes will be utilized in accordance with the external commercial borrowing regulations of the Reserve Bank of India, it added.