Power Finance Corp to raise Rs 3 bn via bonds

MUMBAI: State-run Power Finance Corporation plans to raise at least 3 billion rupees ($71 billion) by selling bonds, said a merchant banker familiar with the development. The issue has an unspecified greenshoe option, the banker said. The issue, which officially opened on Wednesday, closes on Aug 4.

"The termsheet for the issue was released late yesterday," the banker added. The bonds offer investors two maturities. The 5-year bonds carry a coupon of 10.90 percent, payable annually, while the 10-year has a coupon of 10.85 percent, also payable annually, the merchant banker said.

The issue has been rated "AAA" by CRISIL and "LAAA" by ICRA. The arrangers are ICICI Securities Primary Dealership, A.K. Capital, Almondz, Axis Bank and Trust Investment Advisors.