Power Finance Corporation Bonds

Power Finance Corporation (PFC) Bonds are issued by Power Finance Corporation Limited (PFC), a government-owned financial institution that provides funding to India's power sector. As a Navratna PSU under the Ministry of Power, PFC is a highly credible issuer, and its bonds are popular among investors looking for stable, fixed-income opportunities.

These PFC bonds are listed on exchanges like NSE and BSE, making them accessible and tradable for retail and institutional investors.

• Strong Credit Rating: Typically rated AAA by agencies like CRISIL, ICRA, and CARE.

• Issuer Strength: Backed by Government of India ownership and support.

• Attractive Returns: Higher coupon rates compared to traditional FDs.

• Liquidity: Listed on NSE/BSE, allowing investors to check PFC bond price in real-time.

• Tax Benefits: Certain issues (past series) were issued as tax-free bonds.

• Secured Redeemable Bonds: Offering fixed coupon rates, backed by PFC's strong financials.

• Tax-Free Bonds: Interest earned was exempt from income tax (popular among long-term investors).

• Debentures: Both secured and unsecured options issued from time to time.

• Listed Bonds: Traded on NSE and BSE, enabling secondary market participation.

• Government Backing: PFC is a Navratna PSU with strong financial support.

• Stable Returns: Ideal for investors seeking predictable interest income.

• Diverse Tenures: Options across short, medium, and long-term maturities.

• Safe Issuer Profile: One of the most trusted NBFCs in India's power financing sector.

• Market Liquidity: Easy tracking and trading of Power Finance Corporation Limited bonds on exchanges.

• Interest Rate Risk: Prices of listed bonds may fluctuate with interest rate changes.

• Liquidity Risk: Some PFC bond series may have lower trading volumes.

• Credit Risk: Although minimal due to AAA ratings, risks exist if macroeconomic or sector conditions deteriorate.