PFC plans raising up to Rs 4,590 cr via tax-free bonds

State-run lending agency Power Finance Corp plans to raise up to Rs 4,590 crore through tax free bonds by March next year.

The proposed issue is part of its plan to garner Rs 5,000 crore by way of issuing tax free securities in the current fiscal (2012-13). Out of the total target, Rs 410 crore has already been raised. The company, which is engaged in financing power generation and transmission projects, said that bonds would be issued in one or more tranches through non-convertible debentures (NCD) route, according to draft prospectus file with Sebi. An NCD is a type of loan-linked security issued by a company that cannot be converted into stock and usually carries a higher interest rate than a convertible debenture.