Power Finance Corporation has raised $ 1 billion through Reg-S bonds in one go. This was the PFC’s first issuance in the international market after successful acquisition of Government of India holding in REC, according to a company statement.
“The issuance attracted a strong and diversified order book indicating investor’s confidence towards PFC’s differentiated credit despite volatile market conditions and concerns over Indian NBFI sector,” a PFC statement said.
The $ 1 billion Reg- S transaction was executed through two tranches. There was a 5-year tranche for $ 400 million at the rate of 3.87 per cent at a reoffer spread of 195 basis points (bps) over 5-year US Treasury rates and a 10-year tranche for $ 600 million at the rate of 4.577 per cent at a reoffer spread of 242.5 bps over the 10-year US Treasury rates.
Commenting on the occasion, Chairman and Managing Director of PFC, Rajeev Sharma said that this transaction establishes PFC status as leading NBFI in India having priced its first dual and largest USD bonds transaction for Government-owned Indian NBFC.
This is also PFC’s first USD issuance in the 5-year tenor. The successful completion of the deal underscores investor’s continued confidence in PFC post acquisition of REC, the statement said.