Power Finance Corporation has announced the public issue of 100 lakh Secured, Rated, Llisted, Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 1000 each. The issue also includes issuance of zero-coupon bonds of face value of Rs 1 lakh to be issued at discount.
The base size issue is Rs 500 crore, with an option to retain over-subscription up to an additional Rs 4500 crore (Green Shoe Option) aggregating up to Rs 5000 crore.
The issue is scheduled to open on 16 January 2026 and close on 30 January 2026, with an option of early closure or extension.
There are 4 series of NCDs carrying fixed coupons and having a tenure of 5 years, 10 years, and 15 years with annual and cumulative interest payment options.
Zero coupon bonds coming under fifth series would be issued at discount with the price of Rs 50780 to category IV investors. Power Finance Corporation is first PSU to issue zero coupon bonds.
An effective yield (per annum) for the NCD holders in all categories of investors ranges from 6.85% to 7.30%.
Zero coupon NCDs has tenor of 10 year and 1 month and effective yield is at 6.8-6.95%.
The NCDs issue has been rated with AAA/Stable rating by CRISIL, CARE and ICRA.
The minimum application size for each application for NCDs would be 10 NCDs worth Rs 10,000 across and in multiples of Rs 1000 thereafter. The minimum application size for zero coupon bonds is 1 bond having issue price of Rs 50780 for category IV investor.
Allotment is on First Come First Served Basis.
NCDs are proposed to be listed on BSE and NSE.