India's PFC lines up another dollar debt issue since RBI's subsidy window, bankers say

Power Finance

15/07/2026 11:42

By Dharamraj Dhutia
MUMBAI, July 15 (Reuters) - India's state-run Power Finance Corp PWFC.NS has finalised terms for another dollar debt issue, its second in less than a month, two bankers said on Wednesday.
PFC will raise $300 million through three-year dollar bonds at a spread of 110 basis points above the Secured Overnight Financing Rate (SOFR), and the coupon would be payable on a quarterly basis. 
The issue will settle on Thursday and comes after PFC raised a lower-than-planned quantum of $300 million through a five-year dollar debt sale in June
PFC had raised these funds at a spread of 105 basis points over U.S. Treasuries, giving a yield of 5.327%. 
Accepting larger quantum would have led to higher coupon rates, bankers had said
PFC was the first non-bank lender to tap the central bank's subsidised hedging facility for overseas borrowings, and remains the only one to tap this route so far
The bankers requested anonymity as they are not authorised to speak to media, while PFC did not reply to a Reuters email seeking comment
In June, the RBI said external commercial borrowings by banks and state-run companies would qualify for a subsidised hedging facility, helping cut the cost of managing currency risk
Private lender HDFC Bank and Axis Bank have raise an aggregate of $1.55 billion via bonds using the central bank's subsidised facility in June


 (Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)
 ((Dharamraj.Dhutia@thomsonreuters.com;))