MUMBAI, Jan 30 (Reuters) - India’s Power Finance Corp Ltd is planning to raise at least 1.5 billion rupees ($27.91 million) through six-year bonds at 8.72 percent, according to a term sheet obtained by Reuters.
The firm will issue bonds redeemable in three equal instalments. Each bond will offer separately transferable redeemable principal parts (STRPP) at the end of 4th, 5th and 6th year respectively, as per the document.
STRPP allow investors to redeem bonds at par in instalments, making each of those principal parts separately tradeable as well as separately interest-bearing.
Interest will be paid first on Feb. 8, 2014 and subsequently on the same date every year until redemption, the term sheet showed.
The unsecured bonds are rated “AAA” by Crisil, ICRA and CARE and the pay-in date has been scheduled on Wednesday and Thursday. ($1 = 53.7450 Indian rupees) (Reporting by Archana Narayanan; Editing by Jijo Jacob)