Power Finance Corporation (PFC), a Maharatna CPSU and India’s leading power sector NBFC, has become the first Central Public Sector Undertaking (CPSU) and the first NBFC to successfully tap the international bond market after the Reserve Bank of India introduced its swap facility. PFC raised USD 300 million through a five-year bond issuance, attracting strong investor interest from Europe and Asia.
Key Highlights
✅ PFC becomes the first CPSU and first NBFC to issue USD bonds under the RBI swap window.
✅ The company successfully raised USD 300 million through a 5-year bond issuance.
✅ The bonds were priced at 105 basis points over the 5-year U.S. Treasury with a 5.32% coupon.
✅ Proceeds will support power and infrastructure financing in India.
New Delhi, June 23: Power Finance Corporation (PFC) has achieved a significant milestone by becoming the first Central Public Sector Undertaking (CPSU) and the first Non-Banking Financial Company (NBFC) in India to successfully access the international bond market following the introduction of the Reserve Bank of India’s swap facility announced in its latest Monetary Policy Statement.
The landmark transaction reinforces PFC’s position as one of India’s most trusted financial institutions and highlights growing global investor confidence in India’s power sector and infrastructure growth story.
A Maharatna CPSU under the Ministry of Power and India’s leading power sector financier, PFC successfully raised USD 300 million through a Senior Unsecured USD-denominated Bond issuance under the Regulation S (Reg S) route. The bond issuance carries a tenor of five years and was priced at 105 basis points over the benchmark five-year U.S. Treasury yield, resulting in a fixed annual coupon rate of 5.32 percent.
The issue witnessed strong investor demand, attracting broad participation from institutional investors across European and Asian markets. The successful execution of the transaction demonstrates international investors’ confidence in PFC’s strong financial fundamentals, stable business model and strategic role in supporting India’s energy transition and infrastructure development.
The bond issuance received strong investment-grade ratings from leading rating agencies, including Baa3 from Moody’s, BBB- from Fitch Ratings, and BBB+ from CareEdge Ratings. These ratings reflect PFC’s robust credit profile, strong asset quality and strategic importance within India’s power financing ecosystem.
The funds raised through the issuance will primarily be utilized for on-lending to the power and infrastructure sectors, supporting critical development projects across the country. A portion of the proceeds will also be used for general corporate purposes, enhancing the company’s financial flexibility and funding diversification.
Commenting on the successful transaction, Smt. Parminder Chopra, Chairman and Managing Director of PFC, expressed satisfaction over the achievement and highlighted its significance for both the company and the broader Indian financial market.
She noted that PFC’s successful entry into the international bond market under the RBI’s newly introduced swap facility aligns with the Government of India’s objective of attracting greater foreign capital inflows into the country. The transaction also demonstrates international investors’ trust in India’s economic growth trajectory and the long-term prospects of the power and infrastructure sectors.
The issuance comes at a time when India’s energy sector is witnessing unprecedented investments in conventional power generation, renewable energy, transmission infrastructure and grid modernization. As one of the country’s largest infrastructure financiers, PFC plays a pivotal role in supporting these investments and facilitating the nation’s energy security and sustainability goals.
The successful bond offering further strengthens PFC’s diversified funding profile and enhances its ability to access competitive global capital. It also sets a benchmark for other public sector enterprises and financial institutions seeking to leverage international capital markets under the RBI’s new swap facility framework.
With strong investor participation, attractive pricing and investment-grade ratings, the transaction underscores the growing global appeal of Indian issuers and reflects confidence in the country’s long-term infrastructure development agenda.
Conclusion
PFC’s USD 300 million bond issuance marks a landmark achievement for India’s public sector financial institutions. As the first CPSU and NBFC to tap international bond markets under the RBI swap facility, PFC has demonstrated strong global investor confidence while securing resources that will support India’s power and infrastructure growth. The successful transaction further strengthens PFC’s leadership position in infrastructure financing and contributes to the Government’s vision of attracting foreign investment into the Indian economy.
