The Tranche I Issue of NCDs is for a Base Issue Size of Rs500 crore with a green shoe option of up to Rs4,500 crore aggregating up to Rs5,000 crore, which is within the shelf limit of Rs 10,000 crore
FinTech BizNews Service
Mumbai, 12 January 2026: Power Finance Corporation Limited, a public financial institution and a Schedule-A Maharatna Central Public Sector Enterprises (CPSE), focused on the power sector, has filed tranche I prospectus dated January 9, 2026 (“Tranche I Prospectus”) for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs. 1,000 each (except in case of zero coupon NCD, face value shall be Rs 1,00,000 each). The base issue size is Rs. 500 crore with a green shoe option of up to Rs. 4,500 crore, aggregating up to Rs. 5,000 crore (“Tranche I Issue”), which is within the shelf limit of Rs. 10,000 crore (“Issue”).
The Tranche I Issue opens on Friday, January 16, 2026, and closes on Friday, January 30, 2026 with an option of early closure or extension in compliance with Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”). The NCDs are proposed to be listed on National Stock Exchange of India Limited (“NSE”), with NSE being the Designated Stock Exchange for the Issue. The NCDs have been rated by “CARE AAA; Stable” by CARE Ratings Limited, “Crisil AAA/Stable” by Crisil Ratings Limited and “[ICRA] AAA (Stable)” by ICRA Limited.
The minimum application size would be Rs. 10,000 (i.e. 10 NCDs) and thereafter in multiples of Rs. 1,000 (i.e. 1 NCD) thereof (except in case of Series III NCDs (zero coupon NCD), the minimum application shall be 1 NCD and in multiple of 1 NCD thereafter. (For Series III NCDs, the minimum application amount shall be Rs 51,502 for Category I and II; Rs 51,263 for Category III and Rs 50,780 for Category IV). This issue has maturity / tenure options of 5 years, 10 years and 15 years for NCDs with annual coupon payment being offered across series I, II, and IV, respectively. Effective yield for NCD holders in various categories ranges from 6.85% to 7.30% per annum.
Out of the net proceeds of the Tranche I Issue, at least 75% shall be utilised for the purpose of onward lending, financing / refinancing the existing indebtedness of the company, and /or debt servicing (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company) and a maximum up to 25% will be utilised for general corporate purposes. The funds raised form the issuance of zero coupon NCDs shall be utilised towards only the purpose of onward lending and shall not be used for any other purpose.
The Company’s consolidated revenues from operations were Rs. 57,429.28 crore for the six months ended September 30, 2025 and its net profit was Rs. 16,815.84 crore.
For FY25, its consolidated revenue from operations were Rs. 106,501.62 crore and its net profit was Rs. 30,514.40 crore.
The terms of each series of Secured NCDs, offered under Tranche I Issue are set out below:
Series | I | II* | III | IV | V |
Tenor | 5 years | 10 years | 10 years 1 Month | 15 years | 15 years |
Frequency of Interest Payment | Annual | Annual | Zero Coupon NCD | Annual | Cumulative |
Minimum Application and in multiples of thereafter (Rs) | Rs10,000 (10 NCD) and in multiple of Rs1,000 (1 NCD) thereafter. Except in case of Series III NCDs (zero coupon NCD), the minimum application shall be 1 NCD and in multiple of 1 NCD thereafter. (For Series III NCDs, the minimum application amount shall be Rs51,502.00 for Category I and II; Rs51,263.00 for Category III and Rs50,780.00 for Category IV Investors)
| ||||
Face Value (Rs/ NCD) | Rs1,000
| Rs1,00,000
| Rs1,000
| ||
Issue Price of NCDs (Rs/ NCD) for NCD Holders in Category I and Category II. | Rs1,000
| Rs51,502.00 | Rs1,000
| ||
Issue Price of NCDs (Rs/ NCD) for NCD Holders in Category III. | Rs51,263.00 | ||||
Issue Price of NCDs (Rs/ NCD) for NCD Holders in Category IV. | Rs50,780.00 | ||||
Coupon (% per annum) for NCD Holders in Category I and Category II. | 6.85%
| 7.00%
| NA | 7.05%
| N.A. |
Coupon (% per annum) for NCD Holders in Category III | 6.90%
| 7.10%
| NA | 7.20%
| N.A. |
Coupon (% per annum) for NCD Holders in Category IV | 7.00%
| 7.20%
| NA | 7.30%
| N.A. |
Effective Yield (% per annum) for NCD Holders of Category I and Category II | 6.85%
| 6.99%
| 6.80% | 7.04%
| 7.05%
|
Effective Yield (% per annum) for NCD Holders of Category III | 6.90%
| 7.09%
| 6.85%
| 7.19%
| 7.20%
|
Effective Yield (% per annum) for NCD Holders of Category IV | 7.00%
| 7.19%
| 6.95%
| 7.29%
| 7.30%
|
Mode of Interest Payment | Through various modes available | ||||
Amount (Rs / NCD) on Maturity for NCD Holders in Category I and Category II | Rs1,000 | Rs1,000 | Rs1,00,000
| Rs1,000 | Rs2,780.50
|
Amount (Rs / NCD) on Maturity for NCD Holders in Category III | Rs1,000 | Rs1,000 | Rs1,00,000
| Rs1,000 | Rs2,839.56
|
Amount (Rs / NCD) on Maturity for NCD Holders in Category IV | Rs1,000 | Rs1,000 | Rs1,00,000
| Rs1,000 | Rs 2,879.58
|
Maturity / Redemption Date (from the Deemed Date of Allotment) | 5 years | 10 years | 10 years 1 Month | 15 years | 15 years |
Nature of Indebtedness | Secured | ||||
Put and Call Option | Not applicable | ||||
*The Company shall allocate and allot Series II NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
Tipsons Consultancy Services, A. K. Capital Services Limited, Nuvama Wealth Management Limited and Trust Investment Advisors Private Limited are the lead managers to the Issue (“Lead Managers”). Beacon Trusteeship Limited is the Debenture Trustee to the Issue and KFin Technologies Limited is the Registrar to the Issue.
