PFC Tax Free Bonds

Power Finance Corporation  was set up on 16th July 1986 . It is dedicated to Power Sector financing and to the integrated development of the power and associated sectors. The Corporation was notified as a Public Financial Institution in 1990 under Companies Act, 1956. Issue closed early!!!


For more details click below:

• PFC is offering tax-free, secured, redeemable non convertible debentures. The issue opened on 30th Dec 2011 and will close on 16th Jan 2012.
• There are 2 options available-Series 1 is a 10 year bond, with a coupon rate of 8.20% p.a., . Series II is a 15 year bond, with a coupon rate of 8.30% p.a. No tax is deductible, either by PFC or in your hands. Interest will be paid annually on Oct 15 every year.
• PFC has received a AAA credit rating from both CRISIL and ICRA.
• Since the bonds are 'secured', the company will create a charge on the book debts of the company, and or immovable property.
• There is no wealth tax on these bonds. Capital gains after one year will be 10% without indexation in the event you trade the bond.
• The bonds will be listed on the BSE.

The issue closed early-there was a mad rush for these-HNI's were offering retail investors a premium of Rs. 8000/-!!!