PFC raises Rs 6,252 crore through issuance of bonds with different maturities

State-owned Power Finance Corporation (PFC) successfully raised Rs 6,252 crore on Monday through the issuance of bonds with varying maturities. The company issued Rs 3,200 crore in 15-year bonds, offering a coupon rate of 7.11%, and Rs 3,052 crore in 10-year bonds, with a coupon rate of 7.10%. 

According to Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP, "The PFC issuance has resulted in coupon rates tightening by 10 to 15 basis points, with the secondary yield at 7.23%. This reflects strong demand, which is primarily driven by long-term investors such as large insurance companies and pension funds, aligning with their asset-liability management needs."

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“After a hiatus, PFC’s return to the market has likely spurred pent-up demand, particularly for long-tenor bonds, which are witnessing a seasonal uptick in interest from pension funds during December and January. The significant bid-coverage ratio underscores the favorable sentiment in the market,” he added.

Meanwhile, DME Development Limited, a fully-owned special-purpose vehicle (SPV) of the National Highways Authority of India (NHAI) tasked with constructing the Delhi-Mumbai Expressway, raised Rs 775 crore through 10-year Green Bonds at a coupon of 7.23 percent, payable semi-annually, as per market expectations.

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