PFC launches third public NCD issue, plans to raise Rs 5,000 crore

Kolkata, Jan 15 (PTI) Power Finance Corporation (PFC) on Thursday launched its third public issue of secured, redeemable non-convertible debentures, with Chairperson and Managing Director Parminder Chopra calling the strong investor response to its earlier bond offerings a “clear vote of confidence” in the power sector.

Chopra said the sector remains a “fundamental pillar” of India’s growth and self-reliance, with PFC acting as the key financial enabler of the transition.

The company plans to raise up to Rs 5,000 crore through the public NCD issue, which comes after nearly 30 months, with a base issue size of Rs 500 crore and a green-shoe option to accept oversubscriptions up to the full amount.

The public NCD issue – the company’s third such offering and the first zero coupon public bond issue by a PSU in the current calendar year – is set to open for subscription on January 16 and run through January 30.

Chopra noted that previous issues were subscribed more than five times.

“This third issue reflects maturity, continuity and a long-term commitment,” he told reporters here.

The NCD issue offers multiple series with tenures of 5, 10 and 15 years, including a zero-coupon bond option, a first for a PSU in the public bond market. The zero-coupon option is structured to nearly double the investment over a 10-year period, with returns taxed as long-term capital gains.

Other series offer cumulative interest options, under which investments can grow to nearly three times over a 15-year horizon, providing flexibility for both retail and institutional investors.

Highlighting the company’s financial strength, Chopra said PFC has financed nearly 50 per cent of India’s installed power capacity, with a loan asset book of Rs 5.61 lakh crore as of September 2025.

It reported a profit of close to Rs 8,900 crore in the first half of the current financial year, she said.

“These numbers reflect our resilience and long-term vision,” Chopra added. PTI BSM RBT