InvestorQ : Why is PFC planning to raise $1.40 billion from the open market?
sara Kunju made post

Why is PFC planning to raise $1.40 billion from the open market?

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Mary Joseph answered.
4 months ago
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Power Finance Corporation or PFC plans to raise Rs.100 billion or close to $1.4 billion from the Indian markets in the form of debt to take advantage of historically low rates of interest in India. PFC has already filed a draft prospectus for the same. Considering the low rates of interest rates, PFC is confident about filling the book with retail subscriptions.

The monetary stimulus has dragged down rates on all debt products, even as inflation has been high. SBI pays just about 5.3% on its FDs. PFC has seen robust demand for its tax-free infrastructure bonds but taxable bonds will be a different ball game. The notes are rated AAA and will be done in tranches.

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