Power Finance Corporation (PFC), a Maharatna public sector enterprise, has unveiled plans to mobilize up to ₹5,000 crore through a public issue of non-convertible debentures (NCDs). This issue is poised to be the largest retail bond offering in the country in almost eight years, reflecting strong investor interest in fixed-income instruments.
The total issue size includes a base issue of ₹500 crore and an additional greenshoe option of ₹4,500 crore, aggregating to ₹5,000 crore.
Issue Timeline and Listing Information
The Tranche I NCD issue is scheduled to open for subscription on January 16, 2026, and will remain available until January 30, 2026. Depending on demand and regulatory provisions, the issue may close earlier or be extended.
Upon completion, the debentures will be listed on the National Stock Exchange (NSE), which will serve as the designated stock exchange, enabling liquidity and secondary market trading for investors.
Tenor Options and Interest Rates
PFC’s bond offering features multiple maturity choices, including 5 years, 10 years, 10 years and 1 month, and 15 years.
Retail investors can earn interest of up to 7.30% per annum on the longest 15-year tenure. High-net-worth investors will be eligible for rates marginally higher than those offered to institutional categories, making the issue attractive for long-term income seekers.
Zero-Coupon and Maturity-Only Variants
The issue also includes a zero-coupon debenture with a maturity of 10 years and 1 month, providing yields of up to 6.95% for retail subscribers.
Another 15-year variant enables investors to opt for a lump-sum payout at maturity, rather than periodic interest payments, thereby catering to long-term wealth accumulation needs.
Strong Credit Profile and Safety
The NCDs have received the highest credit rating of AAA (Stable) from leading rating agencies including CARE Ratings, CRISIL, and ICRA. This rating denotes strong financial strength and low default risk, underscoring PFC’s robust business fundamentals and sovereign-backed profile.
Proposed Utilisation of Proceeds
A minimum of 75% of the capital raised will be earmarked for lending activities, refinancing existing borrowings, and debt servicing. The remaining up to 25% will be allocated toward general corporate purposes.
Proceeds garnered from the zero-coupon instruments will be specifically utilized for onward lending, aligning with regulatory requirements.
Summary
Power Finance Corporation is set to raise up to ₹5,000 crore through a public NCD issue opening on January 16, 2026. The debentures will be listed on NSE and offer multiple maturity options ranging from 5 to 15 years, with interest rates up to 7.30% for retail investors. AAA (Stable) ratings from major agencies highlight strong credit safety. Most of the funds will be deployed for lending and refinancing, with zero-coupon NCD proceeds dedicated exclusively to onward lending.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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