PFC Becomes First CPSU and NBFC to Access International Bond Market
In a significant milestone for India’s financial and infrastructure financing ecosystem, Power Finance Corporation Ltd. (PFC) has become the first Central Public Sector Undertaking (CPSU) and the first Non-Banking Financial Company (NBFC) to successfully access the international bond market following the Reserve Bank of India’s announcement of the swap facility in its latest Monetary Policy Statement.
The achievement underscores PFC’s strong market standing and highlights growing international investor confidence in India’s power and infrastructure sectors. A Maharatna CPSU and one of the country’s leading financial institutions dedicated to the power sector, PFC has successfully raised USD 300 million through a Senior Unsecured USD-denominated bond issuance under the Reg S route.
The bond issuance carries a tenor of five years and was priced at 105 basis points over the benchmark five-year U.S. Treasury, translating into a fixed coupon rate of 5.32 per cent per annum. The successful pricing reflects the confidence global investors have in PFC’s credit quality, operational strength, and long-term growth prospects.
The transaction witnessed robust demand from international investors, attracting broad-based participation across key financial markets in Europe and Asia. The enthusiastic response from investors is viewed as a positive signal for Indian issuers seeking to raise capital overseas and demonstrates the attractiveness of India’s infrastructure growth story to global capital pools.
Industry observers note that the timing of the issuance is particularly noteworthy, coming soon after the RBI introduced the swap facility aimed at facilitating foreign currency borrowings and enhancing access to global liquidity. By becoming the first CPSU and NBFC to leverage this opportunity, PFC has once again demonstrated its ability to respond proactively to evolving market conditions and funding opportunities.
The bond issue has received strong investment-grade ratings from leading global and domestic credit rating agencies. It is rated Baa3 by Moody’s, BBB- by Fitch Ratings, and BBB+ by CareEdge. These ratings reflect the institution’s sound financial profile, prudent risk management practices, and strategic importance in financing India’s power sector development.
According to the company, the proceeds from the bond issuance will be utilized for on-lending to power and infrastructure projects as well as for general corporate purposes. The fundraising is expected to further strengthen PFC’s ability to support critical infrastructure investments, particularly at a time when India is pursuing ambitious targets in power generation, transmission, renewable energy, and broader infrastructure expansion.
Commenting on the successful transaction, Smt. Parminder Chopra, Chairman and Managing Director of PFC, expressed satisfaction over the landmark achievement. She noted that PFC is the first CPSU to tap the international bond market following the introduction of the RBI’s swap facility. She further emphasized that the issuance aligns with the Government of India’s broader objective of attracting foreign capital into the country and deepening international investor participation in India’s growth journey.
Smt. Chopra also highlighted that the successful completion of the transaction reflects investor confidence in PFC’s business fundamentals, its robust credit profile, and the long-term growth potential of the Indian power sector. Her remarks reinforce the institution’s role as a key enabler of India’s energy and infrastructure ambitions.
Over the years, PFC has emerged as one of the most important financing institutions supporting the development of India’s power ecosystem. The latest international bond issuance not only diversifies its funding sources but also enhances its global market presence. As India continues its transition toward a modern, reliable, and sustainable energy framework, PFC’s ability to attract international capital is expected to play an important role in supporting future investments and sectoral growth.
The successful bond issue therefore represents more than a fundraising exercise—it serves as a reflection of investor trust in PFC, confidence in India’s economic fundamentals, and optimism about the future trajectory of the nation’s power and infrastructure sectors.