Power Finance Corporation Limited — Important, 10-01-2026: Disclosure of material issue

Power Finance Corporation (PFC) is launching a public issue of Secured, Rated, Redeemable Non-Convertible Debentures (NCDs). This capital raise aims to fund its operations and expand its lending activities, offering a new investment opportunity for retail investors.

PFC plans to raise up to ₹5,000 Crore in its Tranche I issue, which is part of a broader ₹10,000 Crore shelf limit. The issue will open for subscription on January 16, 2026, and close on January 30, 2026.

These NCDs are available with various tenors, including 5, 10, and 15 years. They offer attractive effective yields, potentially reaching up to 7.30% per annum for retail investors (Category IV), with face values of ₹1,000 (or ₹1,00,000 for Zero Coupon NCDs). To mitigate risk for debenture holders, the NCDs are secured by a charge on PFC's book debts/receivables, ensuring at least 100% security cover on the outstanding principal and interest.

This strategic fundraising allows PFC to diversify its funding sources and strengthen its financial position, supporting its core business of financing the power sector. For investors, it presents a stable, fixed-income option from a prominent financial institution.