PFC To Raise ₹5,000 Crore Through NCD Issue; Bonds Open From January 16

Power Finance Corporation (PFC), a Maharatna PSU, has announced plans to raise up to ₹5,000 crore through a non-convertible debenture (NCD) issue. This will be the largest retail bond issue in India in nearly 8 years.

The issue has a base size of ₹500 crore and a greenshoe option of ₹4,500 crore, taking the total issue size to ₹5,000 crore.

Issue Opening Date And Listing Details

The Tranche I NCD issue will open on January 16, 2026, and close on January 30, 2026. The issue may close early or be extended as per SEBI guidelines.

The NCDs will be listed on the National Stock Exchange (NSE), which will act as the designated stock exchange.

Bond Tenors And Interest Rates

PFC is offering bonds with maturities of 5 years, 10 years, 10 years and 1 month, and 15 years.

Retail investors can earn interest of up to 7.30% per year on the 15-year bonds. High-net-worth individuals will receive slightly higher rates than institutional investors.

Zero-Coupon And Maturity Payment Options

PFC has also introduced a zero-coupon NCD with a maturity of 10 years and 1 month, offering yields of up to 6.95% for retail investors.

Another 15-year option allows investors to receive the full payment at maturity instead of annual interest payouts.

Credit Rating And Safety

The NCDs are rated AAA (Stable) by CARE Ratings, CRISIL, and ICRA, indicating strong credit quality and low risk.

Use Of Funds

At least 75% of the funds raised will be used for lending, refinancing existing borrowings, or debt servicing. Up to 25% will be used for general corporate purposes.

Funds raised through zero-coupon NCDs will be used only for onward lending.

Read more: Best Gold Stocks in India for January 2026: Titan, D P Abhushan, Thangamayil and More Based on 5-Yr CAGR.

PFC Share Price Performance

PFC share price (NSE: PFC) have gained 8% in the past 1 month but declined 14% in the last 6 months and 7% over 2 years.

Despite short-term weakness, the stock has delivered 282% returns over the past 5 years. On Monday, PFC shares closed 3.47% higher at ₹371.50 on the BSE.

Conclusion

PFC’s ₹5,000 crore NCD issue offers multiple investment choices with attractive returns, making it a suitable option for investors looking for stable income from a highly rated PSU.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.