Power Finance Corp (PFC) considers to issue unsecured bonds worth Rs 1.5 billion, for which it received “AAA” rating by Crisil ICRA and CARE.
The term of these bonds is six years and the corporation would pay 8.72 percent interest on the bonds.
The structure of the bonds is such that they are redeemable in three equal installments. Each bond will offer separately transferable redeemable principal parts (STRPP) at the end of 4th, 5th and 6th year respectively, as per the document.
STRPP allow investors to redeem bonds at par in installments, making each of those principal parts separately tradeable as well as separately interest-bearing.
Interest will be paid first on February 8, 2014 and subsequently on the same date every year until redemption.
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