India's PFC selling at least 1 bln rupees in tax-free bonds

Last Updated: Mon, Nov 19, 2012 06:12 hrs

India's Power Finance Corporation is planning to sell at least 1 billion rupees ($18.15 million) via tax free bonds, according to a term sheet obtained by Reuters on Monday.

The power sector lender will sell 10-year bonds at 7.21 percent and 15-year debt at 7.38 percent, the document showed.

The bond sale is scheduled to open and close on Tuesday.

The fundraising from the state-run firm will be the second tax-free issuance this financial year after IIFCL, which raised 5 billion rupees through three tranches of tax-free bonds earlier this month.

Nine companies have been allowed to issue a total of 535 billion rupees of tax-free bonds this fiscal year, which ends in March 2013.

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