Are PFC retail bonds an attractive alternative to bank fixed deposits?
The coupons offered are in the range of 4.65 percent and 7.15 percent for all fixed rate options across maturities.
Synopsis
This is billed as an alternative to bank fixed deposits that offer record low rates now. While investors can subscribe in four maturity categories, they can exit before scheduled maturities in the liquid secondary market.
MUMBAI: Government-owned Power Finance Corporation is set to launch its public bond sale for retail investors on Friday offering up to 7.5%. The issue seeks to garner Rs 5,000 crore.
This is the first such issuance since the State Bank of India had floated a public offer about a decade ago. About fourth-fifth of the issuance is earmarked for retail and wealthy individual investors. Subscriptions close January 29.