The company plans to raise Rs 5300 crore
Mumbai: Government- owned Power Finance Corporation Ltd (PFC) on Wednesday announced the launch of public issue of its tax-free infrastructure bonds. IIFCL and L&T Infrastructure had also floated their tax free bonds recently. PFC plans to raise a total of Rs 5,300 crore in one or more tranches.
Issue Period: February 24, 2011 to March 22, 2011
Face Value of Bonds: Rs. 5,000 each
Credit Rating: AAA by CRISIL & LAAA by ICRA
Tax Benefits: Up to Rs 20,000 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.
Coupon: 8.30 per cent on 10-year bonds, 8.5 per cent on 15-year bonds
Interest frequency: Annual or cumulative
Buyback option: After 5 for bonds with tenure of 10 years and 7 years for bonds with tenure of 15 years
Listing On: BSE
Lead Managers: ICICI Securities Ltd and SBI Capital Markets Ltd
