Transaction Highlights
- Maiden Green Bond Issuance by Power Finance Corporation
- The funds raised will help promote renewable energy projects across the country and aid in achieving the government’s target of 175GW of installed renewable energy capacity by 2022
- The IPG on the bonds was 180 bps over 10 UST, which was tightened by 22.5bps yielding 3.908% p.a.
- Received bids over $ 1.25 Bn across 75 accounts reflecting significant interest from high quality, real money institutional investors
Structure of the issue
| Issue date | 6th December 2017 | |
| Issuer | Power Finance Corporation | |
| Issue ratings | Baa3 / BBB- / BBB- (Moody’s / S&P / Fitch) | |
| Format | Reg S | |
| Status | Fixed Rate, Semi - Annual | |
| Type | Senior unsecured | |
| Maturity | 10 years | |
| Size | USD 400 Mn | |
| Coupon | 3.75 % p.a (payable semi-annually) | |
| Re - offer Yield | 3.908 % | |
| SBI Capital Markets role | Joint lead manager and Joint Book runner | |
| Re-offer UST Spread | UST +157.5 basis points |
