PFC Tax-Free Bonds Tranche - 1 - Dec 2011 : Key Information

 

The size of the issue is aggregating up to Rs. 1,000 Crore with an option to retain over-subscription upto the Shelf Limit (i.e. Rs 4033.13 Crore). Nature of Indebtedness :The claims of the Bondholders shall rank pari passu with other secured creditors having a charge over the on the book debts of the company and/or identified immovable property as may be agreed between the Company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed and such claims shall be superior to the claims of any unsecured creditors. The Bonds will be issued in Demat mode only. CRISIL Limited ("CRISIL") has assigned a rating of CRISIL AAA/Stable (pronounced as "CRISIL Triple A rating with stable outlook") to the long term borrowing programme of Rs 38,500 Crores and CRISIL A1+ (pronounced as CRISIL A One Plus) to the short term borrowing programme of Rs 5000 Crores (a total of Rs 43,500 crores). ICRA Limited has assigned a rating of ICRA AAA (pronounced ICRA triple A) to the Long Term Borrowing Programme of Rs 43,500 crores during the financial year 2011-12. Opening date of the issue: December 30, 2011 Closing date of the Issue: January 16, 2012 The subscription list for the Issue shall remain open for subscription at the commencement of banking hours and close at the close of banking hours, with an option for early closure (subject to the Issue being open for a minimum of 3 days i.e. upto January 2, 2012) or extension by such period, upto a period of 30 days from the date of opening of the Issue, as may be decided by the Board of Directors/ Committee of the Company. Further, Allotment shall be on first come first serve basis, with Issuer Company having the discretion to close the Issue early irrespective of whether any of the Portion(s) are fully subscribed. Multiple Applications: An applicant is allowed to make one or more applications for the Bonds for the same or other series of Bonds, subject to a minimum application size of Rs. 10,000 and in multiples of Rs 5,000 thereafter, for each application. NRI customers on repatriation as well as non-repatriation basis are eligible to apply for the issue. Proposed to be listed on BSE. Eligible Investors: Category I Public Financial Institutions, Statutory Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the Bonds. Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorised to invest in the Bonds. Insurance companies registered with the IRDA. National Investment Fund. Mutual Funds. Foreign Institutional Investors (including sub-accounts). Companies; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the Bonds. Public/private charitable/religious trusts which are authorised to invest in the Bonds. Scientific and/or industrial research organisations, which are authorised to invest in the Bonds. Partnership firms in the name of the partners. Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009). Category II The following investors applying for an amount aggregating to above Rs 5 lakhs across all Series in each tranche: Resident Indian individuals. Hindu Undivided Families through the Karta. Non Resident Indians on repatriation as well as non-repatriation basis. Category III The following investors applying for an amount aggregating to upto and including Rs 5 lakhs across all Series in each tranche: Resident Indian individuals. Hindu Undivided Families through the Karta. Non Resident Indians on repatriation as well as non-repatriation basis. Allocations will be on a First Come First Serve Basis, as follows: 50% - Applicants belonging to Category I 25% - applicants belonging to Category II 25% - Applicants belonging to Category III Under Subscription: If there is any under subscription in any Portion, priority in allotments will be given in the following order: Category III Portion Category II Portion Category I Portion on a first come first serve basis within each Portion. Allotments in case of oversubscription: In case of an oversubscription, allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis, i.e. full allotment of Bonds to the applicants on a first come first basis up to the date falling 1 (one) day prior to the date of oversubscription and proportionate allotment of Bonds to the applicants on the date of oversubscription (based on the date of submission of each application to the Bankers to the Issue, in each Portion). Proportionate Allotments: For each Portion, on the date of oversubscription: Allotments to the applicants shall be made in proportion to their respective application size, rounded off to the nearest integer, If the process of rounding off to the nearest integer results in the actual allocation of Bonds being higher than the Issue size, not all applicants will be allotted the number of Bonds arrived at after such rounding off. Rather, each applicant whose allotment size, prior to rounding off, had the highest decimal point would be given preference, In the event, there are more than one applicant whose entitlement remain equal after the manner of distribution referred to above, PFC will ensure that the basis of allotment is finalised by draw of lots in a fair and equitable manner. The specific terms of each instrument are as follows: Options Tranche I Series I Tranche I Series II Frequency of Interest Payment Annual Annual Tenor 10 Years 15 Years Face Value per Bond Rs 1000/- Minimum Application 10 Bonds i.e. Rs. 10,000 In multiples of 5 Bond i.e. Rs. 5,000 Coupon Rate 8.20% p.a. 8.30% p.a. Redemption Date 10 Years for Deemed Date of Allotment 15 Years for Deemed Date of Allotment Redemption amount per Bond Repayment of the Face Value plus any interest that may have accrued at the Redemption Date Deemed Date of Allotment Deemed Date of Allotment shall be the date on which the Board of Directors/or any committee thereof approves the Allotment of the Bonds for each Tranche Issue. All benefits relating to the Bonds including interest on Bonds (as specified for each tranche by way of respective Tranche Prospectus) shall be available to the Bondholders from the Deemed Date of Allotment. The actual allotment of Bonds may take place on a date other than the Deemed Date of Allotment

Read the prospectus here.