PFC Raises USD 300 Million Through International Bonds, Becomes First CPSU And NBFC To Tap Global Market Post RBI Swap Facility

Power Finance Corporation (PFC), a state-owned power sector finance company, has achieved a significant milestone by successfully raising USD 300 million through the issuance of USD-denominated bonds in the international market. This achievement makes PFC the first Central Public Sector Undertaking (CPSU) and the first Non-Banking Financial Company (NBFC) in India to access the overseas bond market after the Reserve Bank of India (RBI) announced a special swap facility in its latest monetary policy statement.

The fundraising was carried out through the issuance of senior unsecured bonds with a maturity period of five years. The bonds were priced at 105 basis points above the benchmark five-year US Treasury yield and carry a fixed annual coupon rate of 5.32 percent. The successful pricing reflects strong investor confidence in PFC’s financial strength and India’s economic prospects.

The bond issue received an encouraging response from international investors, attracting participation from key markets across Europe and Asia. The strong demand highlights growing global confidence in India’s public sector enterprises and the country’s long-term growth potential.

PFC stated that the funds raised through this international bond issuance will be used to support its lending activities in the power and infrastructure sectors. These sectors play a crucial role in the country’s economic development and industrial expansion. By securing capital from international markets, the company aims to strengthen its ability to finance critical projects that contribute to energy security, infrastructure development, and sustainable growth.

The successful completion of this transaction marks an important achievement for both PFC and India’s financial sector. It demonstrates the ability of Indian public sector institutions to attract global capital at competitive rates. The development is also expected to encourage other Indian entities to explore international funding opportunities, further strengthening the country’s presence in global financial markets and supporting future economic growth.