PUBLIC ISSUE OF LONG TERM TAX SAVING INFRASTRUCTURE BONDS
ISSUE OPENS ON: Thursday, 29th September, 2011
ISSUE CLOSES ON: Friday, 4th November, 2011*
POWER FINANCE CORPORATION LIMITED (PFC)
(A Government of India undertaking “Nav-ratna Company”)
>Leading financial institution in India focused on the power sector
>Registered with RBI as a non-deposit taking systemically important NBFC & classified as an IFC
Role as Government Agency in Indian Power Sector
>Established as an integral part of, and continue to play a strategic role in, the GoI’s initiatives for the development of the power sector in India
>Works closely with GoI instrumentalities, State governments and power sector utilities, other power sector intermediaries and private sector clients for the development and implementation of policies and structural and procedural reforms for the power sector in India
>Also, involved in various GoI programs for the power sector, including acting as the nodal agency for the UMPP program and the R-APDRP and as a bid process coordinator for the ITP scheme
Products & Services
>Provides a comprehensive range of financial products and related advisory and other services from project conceptualization to the post-commissioning stage for our clients in the power sector, including for generation (conventional and renewable), transmission and distribution projects as well as for related renovation and modernization projects.
>Provides various fund based financial assistance, including project finance, short-term loans, buyer's line of credit and debt refinancing schemes, as well as non-fund based assistance including default payment guarantees and letters of comfort
>Provides various fee-based technical advisory and consultancy services for power sector projects.
Consistent Financial Performance
>Total loan assets increased from ` 43, 903 crore as of March 31, 2007 to ` 99,571 crore as of March 31, 2011, at a CAGR of 23%. As of March 31, 2011, our total loans sanctioned pending disbursement (net of any loan sanctions cancelled) was ` 1,54,759 crore.
>Total income increased from ` 3,928 crore in fiscal 2007 to ` 10,161 crore in fiscal 2011, at a CAGR of 27%, while our profit after tax increased from ` 986 crore in fiscal 2007 to ` 2620 crore in fiscal 2011, at a CAGR of 28%
>Gross NPAs of ` 13.16 crore, ` 13.16 crore, ` 13.16 crore and ` 230.65 crore as of March 31, 2008, 2009 and 2010 and 2011, respectively, which represented 0.03%, 0.02%, 0.02% and 0.23% of total loan assets, respectively
>Profit after tax as a percentage of average total assets and as a percentage of average net worth were 2.79% and 19.68%, respectively, in Fiscal 2011
>Net worth as of March 31, 2011 was ` 14,198 crore
>Capital adequacy ratio was 18.2% and 15.7% as of March 31, 2010 and as of March 31, 2011, respectively
>Public issue of ‘long term infrastructure bonds’ in the nature of secured, redeemable, non-convertible debentures, of face value of ` 5,000 each, having benefits under section 80CCF of the Income Tax Act, up to ` 6,900 crore in aggregate (subject to not exceeding 25% of the incremental infrastructure investment made by the Company in Fiscal 2011), to be issued at par on the terms contained in the Tranche prospectus.
Key Highlights:
1. Issuer: Government of India undertaking (Nav-ratna Company)
2. Highest Credit Rating: Crisil – ‘AAA/Stable’ and ICRA - ‘AAA with stable outlook’
3. Issue size: Up to ` 6,900 Crore
4. Eligible Investors: Resident Individuals and HUFs
5. Face value: ` 5,000 each
6. Minimum Investment: One Bond and in multiples of one Bond thereafter
7. Additional Tax Benefit: Tax deduction of ` 20,000 u/s 80CCF over and above the limit of ` 1,00,000 u/s 80C
8. Security: Secured by creating a charge on the book debts of the company along with identified immovable property by a first charge/pari passu charge, as may be agreed between the Company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed.
9. Flexibility: Four series of Bonds with a combination of Annual and Cumulative payment of interest and maturity of 10 years and 15 years.
10. Coupon Rates:
a. Series 1 and Series 2 with 8.50% p.a. payable on Annual and Cumulative basis respectively with maturity of ten years
b. Series 2 and Series 4 with 8.75% p.a. payable on Annual and Cumulative basis respectively with maturity of fifteen years
11. Buyback Options:
a. At the end of 5 years from the Allotment Date for Series 1 and Series 2 with ten year maturity
b. At the end of 7 years from the Allotment Date for Series 3 and Series 4 (Fifteen year maturity bonds)
12. Lock In: For a period of 5 years from the deemed date of allotment
13. Option to hold the Bonds both in Physical as well as in Demat form
14. Listing: The Bonds will be listed on the BSE and can be traded only in the demat form after the 5-year lock-in period.
15. Investors can mortgage or pledge these Bonds to avail loans after the 5-year lock-in period.
16. No TDS: As per the current provisions of the Income Tax Act, 1961, for Bonds held in demat form; no TDS will be deducted on interest payments. If Bonds are held in physical form, no tax may be withheld if such interest does not exceed ` 2,500 in a financial year. However, such interest is taxable income in the hands of Bondholders.
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Source : icicidirect
ISSUE OPENS ON: Thursday, 29th September, 2011
ISSUE CLOSES ON: Friday, 4th November, 2011*
POWER FINANCE CORPORATION LIMITED (PFC)
(A Government of India undertaking “Nav-ratna Company”)
>Leading financial institution in India focused on the power sector
>Registered with RBI as a non-deposit taking systemically important NBFC & classified as an IFC
Role as Government Agency in Indian Power Sector
>Established as an integral part of, and continue to play a strategic role in, the GoI’s initiatives for the development of the power sector in India
>Works closely with GoI instrumentalities, State governments and power sector utilities, other power sector intermediaries and private sector clients for the development and implementation of policies and structural and procedural reforms for the power sector in India
>Also, involved in various GoI programs for the power sector, including acting as the nodal agency for the UMPP program and the R-APDRP and as a bid process coordinator for the ITP scheme
Products & Services
>Provides a comprehensive range of financial products and related advisory and other services from project conceptualization to the post-commissioning stage for our clients in the power sector, including for generation (conventional and renewable), transmission and distribution projects as well as for related renovation and modernization projects.
>Provides various fund based financial assistance, including project finance, short-term loans, buyer's line of credit and debt refinancing schemes, as well as non-fund based assistance including default payment guarantees and letters of comfort
>Provides various fee-based technical advisory and consultancy services for power sector projects.
Consistent Financial Performance
>Total loan assets increased from ` 43, 903 crore as of March 31, 2007 to ` 99,571 crore as of March 31, 2011, at a CAGR of 23%. As of March 31, 2011, our total loans sanctioned pending disbursement (net of any loan sanctions cancelled) was ` 1,54,759 crore.
>Total income increased from ` 3,928 crore in fiscal 2007 to ` 10,161 crore in fiscal 2011, at a CAGR of 27%, while our profit after tax increased from ` 986 crore in fiscal 2007 to ` 2620 crore in fiscal 2011, at a CAGR of 28%
>Gross NPAs of ` 13.16 crore, ` 13.16 crore, ` 13.16 crore and ` 230.65 crore as of March 31, 2008, 2009 and 2010 and 2011, respectively, which represented 0.03%, 0.02%, 0.02% and 0.23% of total loan assets, respectively
>Profit after tax as a percentage of average total assets and as a percentage of average net worth were 2.79% and 19.68%, respectively, in Fiscal 2011
>Net worth as of March 31, 2011 was ` 14,198 crore
>Capital adequacy ratio was 18.2% and 15.7% as of March 31, 2010 and as of March 31, 2011, respectively
>Public issue of ‘long term infrastructure bonds’ in the nature of secured, redeemable, non-convertible debentures, of face value of ` 5,000 each, having benefits under section 80CCF of the Income Tax Act, up to ` 6,900 crore in aggregate (subject to not exceeding 25% of the incremental infrastructure investment made by the Company in Fiscal 2011), to be issued at par on the terms contained in the Tranche prospectus.
Key Highlights:
1. Issuer: Government of India undertaking (Nav-ratna Company)
2. Highest Credit Rating: Crisil – ‘AAA/Stable’ and ICRA - ‘AAA with stable outlook’
3. Issue size: Up to ` 6,900 Crore
4. Eligible Investors: Resident Individuals and HUFs
5. Face value: ` 5,000 each
6. Minimum Investment: One Bond and in multiples of one Bond thereafter
7. Additional Tax Benefit: Tax deduction of ` 20,000 u/s 80CCF over and above the limit of ` 1,00,000 u/s 80C
8. Security: Secured by creating a charge on the book debts of the company along with identified immovable property by a first charge/pari passu charge, as may be agreed between the Company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed.
9. Flexibility: Four series of Bonds with a combination of Annual and Cumulative payment of interest and maturity of 10 years and 15 years.
10. Coupon Rates:
a. Series 1 and Series 2 with 8.50% p.a. payable on Annual and Cumulative basis respectively with maturity of ten years
b. Series 2 and Series 4 with 8.75% p.a. payable on Annual and Cumulative basis respectively with maturity of fifteen years
11. Buyback Options:
a. At the end of 5 years from the Allotment Date for Series 1 and Series 2 with ten year maturity
b. At the end of 7 years from the Allotment Date for Series 3 and Series 4 (Fifteen year maturity bonds)
12. Lock In: For a period of 5 years from the deemed date of allotment
13. Option to hold the Bonds both in Physical as well as in Demat form
14. Listing: The Bonds will be listed on the BSE and can be traded only in the demat form after the 5-year lock-in period.
15. Investors can mortgage or pledge these Bonds to avail loans after the 5-year lock-in period.
16. No TDS: As per the current provisions of the Income Tax Act, 1961, for Bonds held in demat form; no TDS will be deducted on interest payments. If Bonds are held in physical form, no tax may be withheld if such interest does not exceed ` 2,500 in a financial year. However, such interest is taxable income in the hands of Bondholders.
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Source : icicidirect
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