PFC`s Rs 700 cr tax-free bond issue subscribed 12 times
New Delhi: Eliciting a strong response from investors, Power Finance Corp``s Rs 700-crore tax-free bonds issue got subscribed over 12 times on the first day today.
In less than three weeks, this is the second tax-free bonds issue by a public sector enterprise that has received robust investor response. Late last month, power producer NTPC had pre-closed its Rs 700-crore tax-free bonds issue.
PFC`s bonds issue, which opened today, has received bids worth over Rs 8,461 crore, according to data available on the exchanges till 1700 hrs. This figure translates to more than 12 times oversubscription.
The issue is open till October 9. The company is offering these bonds, each priced at Rs 1,000, with three tenures -- 10, 15 and 20 years.
PFC, a leading lender to the power sector, has hit themarket with its tax-free bonds sale for the second time this financial year. In July, PFC raised Rs 300 crore through sale of tax-free bonds.
Funds from the issue would be utilised for "on-lending to infrastructure projects". NDTV
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