PFC raises $1 bn in dollar bonds

State-run Power Finance Corporation has raised USD 1 billion in debt capital in two tranches, as part of its USD 3-billion medium-term bond programme for the current fiscal. According to the international rating agency Fitch, the company has raised the money in two tranches and has given a BBB- rating to the issue.

In the first tranche, the state-owned firm has mopped up USD 400 million in five-year dollar money, offering an annual coupon of 3.75 percent, and another USD 600 million, maturing in 10 years, offering a coupon of 4.50 percent. The two bonds are part of the state-run power lender's USD 3 billion global medium-term note programme.

"PFC's ratings are equalised with those of the sovereign (BBB-/stable). This reflects its strong legal status, control and oversight, moderate level of historical financial support, strong socio-political and very strong financial implications of a potential default," Fitch said in a note Wednesday.