Power Finance Corp is planning to raise at least 1.5 billion rupees ($22.69 million) via a private placement of tax-free bonds, according to a termsheet.
The issue is open only to sovereign wealth funds and pension and gratuity fund investors, as per the document.
The firm will issue 10-year tax-free bonds at 8.11 percent, 15-year bonds at 8.48 percent, and 20-year bonds at 8.44 percent, as per the document.
The issue has a greenshoe option of 3.76 billion rupees and is rated AAA by Crisil, ICRA and Care rating agencies.
Power Finance has scheduled the issue opening and closing for Friday.