PFC raises $1 billion through international bond issue

The Power Finance Corporation (PFC) has raised $1 billion through Reg-S bonds in the international market. The transaction was executed in two tranches – a five-year tranche for $400 million at 3.87 per cent at a re-offer spread of 195 basis points (bps) over five-year US treasuries (UST) and a 10-year tranche for $600 million at 4.57 per cent at a re-offer spread of 242.5 bps over 10-year UST. The bond sale received a demand for about $5 billion against which PFC retained only the targeted sum.