PFC to raise Rs 5,300-cr via infra bond issue

Mumbai, Feb 23: State-run Power Finance Corporation (PFC) today said it plans to raise upto Rs 5,300 crore through public issue of infrastructure bonds.

"The bonds will be issued in one or more tranches up to Rs 5,300 crore," PFC Chairman and Managing Director, Satnam Singh told reporters here.

The public issue of secured, redeemable, non-convertible debentures of face value of Rs 5,000 each, will open for subscription on Feb 24 and closes on Mar 22. The proceeds of the issue will be used to finance infrastructure projects, Singh said.

The bond issue is under Sec 80CCF of the Income Tax Act, wherein an investor can avail a deduction of up to Rs 20,000 in the taxable income for the current financial year.

The company is offering the bonds which will have a fixed rate of interest up to 8.5 per cent and will be payable on annual or cumulative basis. The bonds offered will be in maturities of 10 years and 15 years with a buyback option after five and seven years respectively.

The bonds would be listed on the Bombay Stock Exchange.

So far, this fiscal three infrastructure finance companies, L&T Infrastructure Finance, India Infrastructure Finance Company (IIFCL) and Infrastructure Development Finance Company (IDFC) have floated such bonds.

All these infrastructure finance companies targeting about 31 million income tax payers in the country are expected to collectively raise about Rs 12,900-crore.

PTI