Industry Giants Consolidate as Indian Power Finance Giant Launches 40 billion rupees Bond Financing

⑴ Market sources report that India's Power Finance Corporation plans to raise up to 40 billion rupees (approximately 442 million) through the issuance of two tranches of bonds. ⑵ Specifically, the company aims to raise 5 billion rupees through two-year bonds, with a green shoe option of 15 billion rupees; at the same time, it will raise the same amount through five-year one-time payment bonds. ⑶ Credit rating agencies CareEdge, Crisil, and Icra have all assigned these bonds a AAA rating. ⑷ Power Finance Corporation will seek bids on February 12 via the electronic bidding platform of the National Stock Exchange of India. ⑸ This financing action follows the company's board approval to acquire the government's 52.63% stake in REC. ⑹ In the budget announced on February 1, India's Finance Minister announced the restructuring of these two public sector non-banking financial companies in the form of a merger, aiming to "achieve scale and improve efficiency."