right: 0px; margin-bottom: 0px; margin-left: 0px; font-family: arial, sans-serif; font-size: 13px; background-color: rgb(192, 0, 0); text-align: center; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; “>PFC LONG TERM INFRASTRUCTURE BONDS – SERIES 86

 



COMPANY PROFILE

 

PFC was Incorporated in the year 1986, received certificate of commencement of business in the year 1987 and commenced operations in the year 1988 as a part of GOI initiative to enhance funding of power projects in India. Government of India undertaking operating as a leading power sector Public Financial Institution providing fund and non-fund based support for the development of the Indian Power Sector. It is declared as a ‘Public Financial Institution’ under section 4A of the Companies Act, 1956 in the year 1990. Initially provided funding to power projects for SEBs and power departments and from 1997 began financing power projects in the private sector. Spectrum of clients include state power utilities, central power sector utilities, power departments, private power sector utilities (including Independent Power Producers), joint sector power utilities, power equipment manufacturers and power utilities run by local municipalities.

 


 

KEY POINTS :

1.Issue Starts on 29th Feb., 12 and Closes on 23rd March, 12.

The issuer would have the rights to pre-close the issue or extend closing date of issue by giving notice to the arrangers.

2. Tax Exemption Benefits upto Rs. 20,000/- under section 80 CCF.

3. One can invest more than Rs.20,000/-, but tax exemption would only be upto Rs.20,000/-.

4. Issued in both Dematerialized and physical form.

5. Interest paid on annually or cumulative basis depending upon the series chosen.

 

TERMS OF THE ISSUE

 

Issuer

Power Finance Corporation Limited "PFC" ("the Issuer")

Offering

Secured, redeemable, non convertible PFC Long Term Infrastructure Bonds (2011-12) of Rs.5000/- each aggregating to Rs. 50 crores with a green shoe option to retain over – subscription amount upto Rs. 6804.36 crores.

Issue Size

Rs. 50 crores with the right to retain over – subscription (Green Shoe Option) amount upto Rs. 6804.36 crores.

Type

Private Placement Basis

Instrument

Secured, Redeemable, Non-Convertible, Long Term Infrastructure Bonds in the nature of Debentures Series 86.

Face Value

Rs.5000/- (Rupees Five Thousand) per bond. Bonds to be issued in multiples of Rs.5,000/-.

Minimum Application Amount

Rs.5000/-

Maximum Application Amount

No Limit

Form of Issuance

Dematerialized Form and Physical Form

Eligible Investors

Resident Indian Individuals (Major) and HUF through Karta of the HUF

Listing

NSE

Interest payments

Interest is payable annually / cumulative

Ratings

“AAA/Stable” from CRISIL and “AAA by  ICRA

Trustee

PNB Investment Services Limited

Security

The bonds series issued by the company will be secured by creating a charge on the book debts of the company and / or immovable property by an first pari passu charge, as may be agreed between the company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed.

Registrars & Transfer Agent

Karvy Computershare Private Limited

Minimum Application Size

1 Bond and then in multiple of 1 Bond

Pay in Date

29th Feb., 12 to 23rd March, 12.

Collecting Banker

IndusInd & HDFC Bank

Record Date

15 Calendar Days

Issuance & Trading

Bonds shall be issued in Dematerialized as well as Physical form. However, trading allowed only in Dematerialized mode after the expiry lock – in – period of 5 years.

Mode of Interest Payment / Redemption

Through NECS

Note : PFC can at its sole and absolute discretion revise the terms of the offer including coupon rate and period. The investors are advised to check the terms and conditions including coupon rate prevailing at the time of applying.

 

TERMS OF AVAILABLE OPTIONS

                                                       

READ  Muthoot Finance NCDs at 13-13.25% - Details

TENOR

10 Years – 86-A

10 Years – 86-B

15 Years – 86-C

15 Years – 86-D

Frequency of Interest payment

Annual

Cumulative

Annual

Cumulative

Face Value per Bond

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Coupon Rate p.a (%)

8.43% p..a

8.43% p.a. (compounded annually)

8.72% p.a.

8.72% p.a. (compounded annually)

Date of Redemption

30th March, 2022

30th March, 2022

30th March, 2027

30th March, 2027

Buyback Option

Yes

Yes

Yes

Yes

Buyback Date

One date, being the date falling five years and one day from the Deemed Date of Allotment

One date, being the date falling five years and one day from the Deemed Date of Allotment

One date, being the date falling six years and one day from the Deemed Date of Allotment

One date, being the date falling six years and one day from the Deemed Date of Allotment

Buyback Intimation Period

The period beginning not more than nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date

The period beginning not more than nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date

The period beginning not more than nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date

The period beginning not more than nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date

First Interest Payment Date

30th March, 2013

 

30th March, 2013

 

Subsequent interest Payment date

30th March every year till maturity

Cumulative interest to be paid at the time of redemption

30th March every year till maturity

Cumulative interest to be paid at the time of redemption

Maturity Amount in case of buy back options

Buyback Date

31st March, 2017

31st March, 2017

31st March, 2018

31st March, 2018

Maturity Amount after buyback period

Rs.5,000

Rs.7494/-

Rs.5,000

Rs.8257/-

Maturity Amount in case without buy back facility

Maturity Date

30th March, 2022

30th March, 2022

30th March, 2027

30th March, 2027

Maturity Amount

Rs.5,000

Rs.11,232/-

Rs.5,000

Rs.17,523/-

Lock – in – Period

Five Years from the deemed date of Allotment.

Issue & Redemption Price

At Par

Deemed Date of Allotment

30th March, 2012

Interest on application money

At the coupon rate from the date of credit in PFC account till the day prior to the deemed date of allotment. For the Series 86-B and Series 86-D, the interest will be compounded annually @ 8.43% and 8.72% respectively and will be paid at the time of redemption. For series 86-A & 86-C it will be paid along with the first interest payment. No interest will be paid on application money rejected on technical grounds.

 

 

 

READ  GMR Industries Technical chart | 21-Dec-2011

Term Sheet PFC Infra Bond.pdf

List of Branches_Indusind Bank.pdf

List of Branches_HDFC Bank.pdf


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power Finance Corporation (PFC) – Long Term Infrastructure Bonds – Series 86
Rate this post
https://images.investmentkit.com/articles/wp-content/uploads/2012/02/pfc-bonds.jpghttps://images.investmentkit.com/articles/wp-content/uploads/2012/02/pfc-bonds-150x150.jpgAdminTaxesAuto,company,Cumulative,Dematerialized,Draft,Form,independent power producers,indian power sector,infrastructure bonds,Long,March,ndash,Payment,period,PFC,power finance corporation,private placement basis,section 4a,sectorPFC LONG TERM INFRASTRUCTURE BONDS – SERIES 86   COMPANY PROFILE   PFC was Incorporated in the year 1986, received certificate of commencement of business in the year 1987 and commenced operations in the year 1988 as a part of GOI initiative to enhance funding of power projects in India. Government of India undertaking operating as...Tutorials to Educate Investors