PFC 8.92% Tax-Free Bonds – October 2013 Issue
Power Finance Corporation
(PFC) has come out with a Public
Issue of Tax Free Secured Redeemable Non-Convertible Bonds with a Face value of
Rs 1,000 per Bond. Power
Finance Corporation (PFC), a Government of India (GoI) undertaking, is one of the leading
financial institutions providing financial assistance to the power sector in
India. It finances and promotes power transmission, distribution and generation
projects in India.
Offer to the issue opens on 14th October 2013 and closes on 11th November
2013. However the Issue may close on such earlier date or
extended date as may be decided by the company.
Salient features of the BOND Issue – Tranche – I
The Bonds are issued in the form of tax-free, secured,
redeemable, non-convertible bonds and the interest on the Bonds will
not form part of the total income as per provisions u/s. 10 (15) (iv) (h) of
I.T. Act, 1961.
Minimum
Application: Rs 5,000 or 5
Bonds of a Face Value of Rs 1,000 each Bond
Coupon Rates of Bonds: The Bonds bear an attractive coupon rate as following:
Category I, II, III applicants Category IV applicants (RII)
8.18% p.a. for 10 Years 8.43% p.a. for 10 Years
8.54% for 15 Years 8.79% for 15 Years
8.67% for 20 Years 8.92% for 20 Years
Category I – Qualified
Institutional Bidders
Category II –
Non-Institutional Investors
Category III – High
Networth Individuals including HUFs, NRIs & QFIs
Category IV – Resident
Indian Individuals including HUFs, NRIs & QFIs
Ratings of the issue
Credit rating agency ICRA has rated the Bonds
under this offer as “ICRA AAA” and CARE has
rated the Bonds as“CARE AAA” and CRISIL has rated
the bonds as “CRISIL AAA/Stable”. Instruments with this rating
are considered to have the highest degree of safety regarding timely
servicing of financial obligations. Such instruments carry very low
credit risk.
Security
The security for the Bonds proposed to be issued, being a charge
on the book debts of the Company by a first/pari passu charge, and/ or any other
security, pursuant to the terms of the Debenture Trust Deed, to be created
within one month of Deemed Date of Allotment, in accordance with the SEBI Debt
Regulations. The Company shall create DRR of 25% of the value of Bonds
issued & allotted for the redemption of the Bonds.
Interest
on Application Money & Refund
PFC will pay interest to the successful allottees on their
application money at the applicable coupon rates, from the date of realization
of application money up to one day prior to the deemed date of allotment.
Unsuccessful allottees will get interest @ 5% per annum on their refund money subject to deduction of income tax under the provisions of the
Income Tax Act, 1961, as amended.
Priority of Allotment
Allotments of Bonds in this Issue will be on a first come-first
serve basis, on the basis of the date of upload of Applications on the
online platform of the Stock Exchange,
Mode of Allotment
Allotment of Bonds can be in both dematerialised and physical form to all
Applicants other than QFIs. Allotment to QFIs shall be made in dematerialised form
only.
Collateral
Investors can pledge or hypothecate these bonds
to avail loans.
Listing of the Issue
The bonds will be listed on Bombay Stock Exchange (BSE).
