PFC Raises US$300 Million Through 5.32% Notes Due 2031 Under Global Medium Term Note Programme

Key Metrics:

What Happened ?

Key Details

Issue Structure & Funding Details:

• PFC has issued US$300 million of international notes.
• The issuance is part of the company’s US$8 billion Global Medium Term Note Programme.
• The notes carry a fixed coupon rate of 5.32% per annum.
• Interest payments will be made semi-annually.
• The bonds are denominated in U.S. Dollars.
• Notes are unsecured obligations of the issuer.
• The securities rank pari passu with other unsecured obligations of PFC.
• The notes are proposed to be listed on NSE IFSC and India INX.
• Proceeds will be deployed in line with RBI External Commercial Borrowing guidelines.
• Final settlement is expected on 30 June 2026.

Note:

• The issuance demonstrates continued access to global debt capital markets and provides PFC with diversified funding sources to support its lending operations in the power and infrastructure financing sectors.

Risk Analysis

Summary:

• While the bond issuance improves funding availability and liability diversification, it also increases foreign currency borrowing exposure and future debt servicing obligations.

Key Risks:

• Foreign exchange fluctuations could impact borrowing costs if not adequately hedged.
• Rising global interest rates may affect future refinancing conditions.
• The issuance increases overall debt obligations until maturity.
• Regulatory changes affecting ECB frameworks could influence future funding flexibility.
• International market volatility can affect future overseas fundraising opportunities.

Worst Case:

• Significant currency depreciation or adverse funding market conditions could increase the effective cost of servicing and refinancing foreign currency debt.

Risk Level: Medium

Company Commentary

• PFC launched and priced US$300 million 5.32% Notes due 2031.
• The issuance has been completed under the company’s US$8 billion GMTN Programme.
• Interest will be paid semi-annually on 30 June and 30 December.
• The notes represent direct, unconditional and unsecured obligations of PFC.
• The securities will rank pari passu with the company’s other unsecured obligations.
• The notes are proposed to be listed on NSE IFSC and India INX.
• Proceeds will be utilized in accordance with RBI External Commercial Borrowing guidelines.