PFC launches third public NCD issue, plans to raise ₹5,000 crore

Earlier bond issuances by Power Finance Corporation attracted subscriptions exceeding five times the offer size.

Power Finance Corporation (PFC) announced its third secured, redeemable non-convertible debenture offering on Thursday. Chairperson and Managing Director Parminder Chopra highlighted that enthusiastic participation in prior bond sales reflects strong investor belief in India’s power sector.

Chopra emphasized the industry’s crucial role in supporting national economic development and energy independence, noting PFC’s strategic position as a financier enabling this transformation.

The current offering aims to mobilize up to ₹5,000 crore, featuring a ₹500 crore base issue with provisions to retain oversubscriptions up to the total amount. This marks PFC’s first public debt issuance in over two-and-a-half years.

The subscription window opens January 16 and closes January 30. This represents the inaugural zero-coupon public bond offering by any public sector entity this year.

“Our prior issuances witnessed subscription multiples exceeding fivefold,” stated Chopra, indicating that this third offering demonstrates progression and sustained commitment to capital markets.

The debentures feature 5-, 10-, and 15-year tenures with varied payment structures. The 10-year zero-coupon series represents a novel option for public sector bonds in open markets, designed to nearly double investor capital at maturity, subject to long-term capital gains taxation.

Alternative cumulative interest options allow potential tripling of investment value across 15-year tenures, catering to diverse investor requirements across retail and institutional segments.

The company’s financial disclosures reveal significant industry influence, with financed projects representing roughly 50% of India’s operational power capacity. Its loan portfolio reached ₹5.61 lakh crore as of September 2025, supporting infrastructure development nationwide.

Operational performance remained strong with H1 profits nearing ₹8,900 crore. “These results validate our operational strength and strategic planning,” Chopra concluded.

Published on January 15, 2026