Khaitan & Co acts on Issuance of Non-Convertible Debentures by Power Finance Corp

Power Finance Corporation Limited has made a public issue of secured, rated, listed, redeemable, non-convertible debentures of face value of ₹1,000 each (NCDs), aggregating up to ₹500 crores, referred to as the “base issue” with a green shoe option of up to ₹4,500 crores, amounting to ₹5000 crores which is within the shelf limit of ₹10,000 crores.,

The principal amount of the NCDs to be issued in terms of the tranche prospectus together with all interest due and payable on the NCDs, thereof shall be secured by way of first pari-passu charge through hypothecation of the book debts/receivables (excluding the receivables on which a specific charge has already been created by the Company) such that a security cover of at least 100% of the outstanding principal amounts of the NCDs and interest thereon is maintained at all times until the date of maturity.

Khaitan & Co advised Power Finance Corp in this issuance of debentures.

The transaction team consisted of Soumya Mohapatra (Partner), Surbhi Narang (Principal Associate), Advait Balekundri (Associate), Mayank Chaturvedi (Associate) and Nikunj Mehta (Associate).

The proceeds of the Issue shall be utilized for the purpose of onward lending, financing / refinancing the existing indebtedness of Power Finance Corp, and/or debt servicing (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company) and for general corporate purposes.

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