New Delhi: Power Finance Corporation (PFC), one of India’s leading infrastructure finance companies, has successfully priced a US$300 million Floating Rate Notes (FRNs) issuance under its US$8 billion Global Medium Term Note (GMTN) Programme. The fundraising marks another significant milestone in the company’s global borrowing strategy and reinforces investor confidence in PFC’s strong credit profile.
The proceeds from the issue will be utilized in accordance with the Reserve Bank of India’s External Commercial Borrowing (ECB) guidelines, primarily to finance projects in India’s power and infrastructure sectors.
PFC Issues US$300 Million Floating Rate Notes Due 2029
The latest international bond issuance consists of US$300 million Floating Rate Notes (FRNs) with a three-year tenor. The notes are scheduled to mature on July 16, 2029, while the expected settlement date is July 16, 2026.
The bonds carry a floating interest rate of Overnight SOFR + 110 basis points per annum, with coupon payments to investors being made quarterly.
Unless redeemed earlier under the terms of the issuance, both the principal amount and interest payments will be made in U.S. dollars upon maturity.
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Notes to Be Listed on NSE IFSC and India INX
PFC stated that the Floating Rate Notes represent direct, unconditional, and unsecured obligations of the company. They will rank pari passu, meaning they will have equal payment priority with all of PFC’s existing and future unsecured obligations.
To provide global investors with easier access, the bonds will be listed on NSE IFSC and India International Exchange (India INX), two major international financial exchanges operating from India’s International Financial Services Centre (IFSC).
Proceeds to Finance India’s Power and Infrastructure Projects
The company said the net proceeds from the bond issuance will be deployed strictly in compliance with the Reserve Bank of India’s External Commercial Borrowing (ECB) framework.
PFC is expected to use the funds for financing projects across the country’s power and infrastructure ecosystem, including:
- Power generation projects
- Transmission infrastructure
- Electricity distribution networks
- Renewable energy initiatives
- Other eligible infrastructure financing activities
The fundraising will further strengthen PFC’s ability to support India’s growing energy demand and long-term infrastructure development.
Strong Global Investor Confidence in PFC
The successful pricing of the US$300 million issuance reflects sustained confidence among international investors in PFC’s financial strength and stable credit profile.
Over the years, PFC has consistently accessed both domestic and overseas debt markets to diversify its funding sources and secure long-term capital at competitive rates. This strategy enables the company to continue financing large-scale infrastructure projects that are critical to India’s economic growth and energy transition.
The latest transaction further strengthens PFC’s presence in global capital markets while expanding its international investor base.
About Power Finance Corporation (PFC)
Power Finance Corporation (PFC) is a Government of India-owned non-banking financial company (NBFC) and one of the country’s largest infrastructure finance institutions. Established in 1986 under the Ministry of Power, PFC primarily provides financial assistance for projects across the power sector, including generation, transmission, distribution, renewable energy, and other infrastructure segments. Over the years, the company has played a crucial role in supporting India’s energy security and infrastructure development through long-term project financing and diversified fundraising across domestic and international capital markets.
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