Golden investment opportunity! Rs 5,000 crore NCD announced by PFC; Returns up to 7.30 percent

By Samira Vishwas On Jan 12, 2026

Golden investment opportunity!
5,000 crore NCD announced by PFC
Returns up to 7.30 percent

Mumbai/New Delhi, January 12, 2026: POWER FINANCE CORPORATION LIMITEDa public financial institution and a ‘Schedule-A Maharatna Central Public Sector Company (CPSE) focusing on the energy sector, has filed a Tranche I Prospectus (“Tranche I Prospectus”) dated January 9, 2026 for a public issue of secured, rated, listed, redeemable, non-convertible debentures of face value of Rs.1,000 each (except in the case of zero coupon NCDs, face value 1,00,000 each). The original issue size is Rs 500 crore, which will raise a total of Rs 5,000 crore with a green shoe option of up to Rs 4,500 crore. 5,000 crore (first phase issue), which is within the total limit of Rs.10,000 crore (issue).

The first phase issue will open on Friday, January 16, 2026 and close on Friday, January 30, 2026. Also option of early closure or extension will be available as per Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations 2021, as amended (SEBI NCS Regulation). These NCDs will be listed on the National Stock Exchange of India Limited (NSE) and NSE will be the designated stock exchange for the issue. These NCDs are rated “CARE AAA; Stable” by CARE Ratings Limited, “Crisil AAA/Stable” by CRISIL Ratings Limited and “Crisil AAA; Stable” by ICRA Limited.[ICRA] AAA (Stable)” rating has been given.

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The minimum application size shall be Rs.10,000 (i.e. 10 NCDs) followed by multiples of Rs.1,000 (i.e. 1 NCD) (Except in the case of Series III NCDs (Zero Coupon NCDs only) where the minimum application size shall be Rs. 1 NCD followed by multiples of 1 NCD. (For Series III NCDs, the minimum application amount shall be Rs. 51,502 for Category I & II; Rs. 51,502 for Category III). 51,263 and Rs.50,780 for Series IV).The issue has maturities/tenors of 5 years, 10 years and 15 years respectively, with annual coupon payments for holders of NCDs ranging from 6.85 percent to 7.30 percent.

Of the net proceeds of the Tranche I Issue, a minimum of 75 percent will be used for the purposes of further lending, financing/refinancing of the Company’s existing debt, and/or debt servicing (payment of interest on the Company’s existing debt and/or repayment/prepayment of principal and interest) and a maximum of 25 percent will be used for general corporate purposes. The funds raised from the sale of zero coupon NCDs will be used only for the purpose of further lending and not for any other purpose.
For the six months ended September 30, 2025, the company’s consolidated revenue from operations was Rs 57,429.28 crore and the company’s net profit was Rs 16,815.84 crore.

For FY25, the company’s consolidated revenue from operations was Rs 106,501.62 crore and its net profit was Rs 30,514.40 crore. TIPSONS CONSULTANCY SERVICES, A. K. Capital Services Limited, Nuwama Wealth Management Limited and Trust Investment Advisors Private Limited are the Lead Managers (Lead Managers) of this Issue. Beacon Trusteeship Limited is the debenture trustee of this issue and Caffeine Technologies Limited is the registrar of this issue.

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