State-owned Power Finance Corporation (PFC) has announced plans to raise up to ₹5,000 crore through a public issue of bonds, according to a company release.
Issue structure and timeline
The bond issue has a base size of ₹500 crore with a greenshoe option of ₹4,500 crore, taking the total issue size to ₹5,000 crore. The proposed fundraising falls within PFC’s existing ₹10,000 crore shelf limit.
The issue will open for subscription on January 16, 2026, and close on January 30, 2026, with an option for early closure or extension depending on investor response.
Coupon, rating and listing
PFC is offering bonds with coupon rates ranging between 6.85% and 7.30%, across multiple series. The bonds have received a ‘AAA’ rating with a Stable outlook from CARE Ratings, CRISIL, and ICRA. The securities are proposed to be listed on the National Stock Exchange (NSE).
Use of proceeds
According to the company, 75% of the net proceeds will be used for onward lending, financing or refinancing existing borrowings, while the remaining 25% will be deployed for general corporate purposes.
Context: earlier bond withdrawals
The public bond issue comes after PFC withdrew three private placement bond issues in recent months due to higher yield demands from investors amid rising government bond yields.
In December, PFC scrapped bond issuances worth ₹3,500 crore and ₹3,000 crore, following similar withdrawals in November, as investors sought higher coupons in anticipation of interest rate movements by the Reserve Bank of India.
The public issue marks PFC’s return to the bond market through a retail-focused route after multiple aborted private placements.
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