New Delhi: Power Finance Corporation (PFC) on Thursday launched its third public issue of secured, redeemable non-convertible debentures (NCDs), signaling a strong push to mobilize long-term funds for India’s power sector. The base issue size has been set at Rs 500 crore, with a green-shoe option allowing acceptance of oversubscriptions up to the full amount, potentially raising Rs 5,000 crore.
Chairperson and Managing Director Parminder Chopra described the move as a reflection of investor confidence, noting that PFC’s earlier NCD offerings were subscribed over five times, highlighting the robust faith in both the company and the power sector.
Details of the Public Issue
The NCD issue, PFC’s third public offering and the first zero-coupon public bond issue by a PSU in the current calendar year, will open for subscription on January 16 and run until January 30.
The offering includes multiple series with tenures of 5, 10, and 15 years, including:
- Zero-coupon bonds – designed to nearly double the investment over 10 years, with returns taxed as long-term capital gains.
- Cumulative interest options – allowing investments to grow nearly three times over a 15-year horizon, providing flexible choices for both retail and institutional investors.
Chopra emphasized that the issue reflects PFC’s maturity, continuity, and long-term commitment to financing India’s power infrastructure.
PFC’s Role in India’s Power Sector
PFC is a key financial enabler of India’s power sector, having financed nearly 50% of the country’s installed power capacity. The company manages a loan asset book of Rs 5.61 lakh crore as of September 2025 and reported a profit of close to Rs 8,900 crore in the first half of the current financial year.
Chopra highlighted that the strong investor response and financial resilience of PFC reflect its long-term vision and critical role in supporting India’s growth and energy self-reliance.
About PFC
Power Finance Corporation is a state-owned financial institution and a leading PSU in India that provides long-term finance for the power sector. With a focus on supporting generation, transmission, and distribution projects, PFC plays a vital role in India’s energy infrastructure development and sustainable growth initiatives.
