PFC to raise Rs 3,876 cr via tax-free bonds

Power Finance Corp (PFC) has filed draft documents with the market regulator for raising up to Rs 3,876 crore through tax-free bonds by March next year.

The proposed issue is part of its plan to garner Rs 5,000 crore by way of issuing tax-free securities in 2013-2014. Of the total target, Rs 1,124.10 crore has already been raised.

"...Company (PFC) proposes to raise balance amount of upto Rs 3,875.90 crore through this issue of the bonds in one or more tranches prior to March 31, 2014, as approved by its Board," according to draft prospectus filed with Securities and Exchange Board of India (Sebi).

The company, which is engaged in financing power generation and transmission projects, said that proceeds of the issue would be utilised towards general lending operations of the company and other associated business objectives and to discharge existing debt obligations.

ICICI Securities, A K Capital Services, Axis Capital and Edelweiss Financial Services are book running lead managers to the issue.