PFC opens Rs 5,000 crore secured NCD issue

Power Finance Corporation Limited (PFC) has announced the launch of a public issue of secured, redeemable, non-convertible debentures (NCDs). The issue has a base size of Rs 500 crore, with an option to retain oversubscription of up to Rs 4,500 crore, taking the total tranche size to Rs 5,000 crore. The issue opens on January 16, 2026.

The issue is being launched following approvals from the Chairman and Managing Director and the Director (Finance) of PFC. It is offered under a shelf prospectus limit of Rs 10,000 crore and constitutes Tranche I of the programme. The relevant prospectuses are dated January 09, 2026. The issue is scheduled to close on January 30, 2026, and the NCDs will be listed on the National Stock Exchange of India Limited (NSE).

The offer comprises five series with different tenors, interest payment structures and yields, designed for investor categories I, II, III and IV. Series I has a tenor of five years with an annual coupon ranging from 6.85% to 7.00%. Series II has a tenor of ten years with an annual coupon of 7.00% to 7.20%. Series III carries a tenor of ten years and one month and is issued as a zero-coupon instrument at a discount. Series IV has a tenor of 15 years with an annual coupon between 7.05% and 7.30%. Series V also has a tenor of 15 years and follows a cumulative structure with payout at maturity.

The effective annual yield across the series ranges from 6.80% to 7.30%, depending on the series and investor category. The minimum application size is Rs 10,000, equivalent to ten NCDs, for most series. For the zero-coupon Series III, the minimum application is one NCD, amounting to approximately Rs 51,502 for Categories I and II.

The NCDs are proposed to be secured by a first pari-passu charge on the company’s book debts and receivables, with a minimum security cover of 100%. The terms also provide for additional default interest of 2% per annum in case of any delay in payment.

PFC has stated that the issue may close earlier or be extended in accordance with applicable regulatory provisions, subject to public notice. Interest and other benefits will accrue to investors from the deemed date of allotment, to be approved by the Director (Finance).

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