Power Finance Corporation Limited - Public Issue of Infrastructure Bonds opens on February 24, 2011

Hyderabad, February 23, 2011: Power Finance Corporation Limited (“PFC” / the “Company”), one of the leading Public Financial Institution dedicated to financing the power sector, will open its Public Issue of infrastructure bonds on February 24, 2011. The bonds will be of face value of Rs. 5,000 each and will be listed on the Bombay Stock Exchange Limited. The Issue shall not exceed 25% of the incremental infrastructure investment made by the Company during Fiscal 2010.
The main object of the infrastructure bond issue is to provide financing to the Infrastructure Sector. Under this bond issuance, an investor can avail a deduction up to Rs. 20000 in the taxable income for the current financial year under section 80CCF of the Income Tax Act, 1961. This deduction is over and above the Rs. 1 Lakh deduction that can be availed under section 80C of the Income Tax Act. The Company is offering the Bonds which shall have a fixed rate of interest up to 8.5% and shall 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 5 years and 7 years respectively.
ICICI Securities Limited and SBI Capital Markets Limited are the Lead Managers to the Issue.

About Power Finance Corporation Limited:
Power Finance Corporation Ltd. (PFC) is a government company, incorporated under the Companies Act, 1956 and is under the administrative control of Ministry of Power, Government of India. The Company has received the status of NBFCND- IFC (Non Banking Finance Company – Non Deposit taking -Infrastructure Finance Company) on 28th July 2010. PFC was set up in July 1986 as a Financial Institution (FI) dedicated to Power Sector financing and committed to the integrated development of the power and associated sectors. The Corporation was notified as a Public Financial Institution in 1990 under Companies Act, 1956. The Corporation was registered as a Non Banking Financial Company by RBI and has been conferred with the status of Nav-Ratna PSU by Govt. of India on 22nd June, 2007.

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This release was published on openPR.