1. POWER FINANCE CORPORATION LIMITED
(A Navratna PSE)
Capital Gain Tax Exemption Bonds u/s 54EC of Income Tax Act, 1961

2. Overview of PFC
Set up in Jul 1986, as dedicated FI for Power Sector
Registered as NBFC in Feb, 1998 and categorized by RBI as Infrastructure Finance Company (IFC) in July, 2010
With maiden IPO, PFC got listed in Feb, 2007
Current Govt. of India Holding 66.35%
Declared as a Navratna PSE in Jun, 2007
PFC plays a key role in Govt. schemes for power sector
Nodal Agency for UMPPs, IPDS, ITPs (Bid Process Coordinator)
Largest Infrastructure Finance Co. (IFC) in the country
Consistently rated “Excellent” based on MoU targets signed with Govt. of India
PFC Credit Ratings
Domestic Ratings
CRISIL
‘AAA’
(Highest)
ICRA
CARE
International Ratings
(at par with ‘Sovereign’ rating)
Moody’s
Baa3
S&P
BBB-
FITCH
PFC is one of the most successfully managed public enterprises

3. Loan Asset Profile (~Rs. 2,45,525 Crs as on 31.03.2017)
9/10/2018 6:09 PM
Segment Mix (%)
Client Mix (%) @ *
* Others include loans for computerization, equipment
manufacturing, studies etc.
@ JVs of CPSUs / State Owned & Other Cos
like Bhartiya Rail Bijlee Co Ltd
(JV of NTPC and Indian Railways)
NLC Tamilnadu Power Ltd
(JV of NLC & TANGEDCO)
amangla\India\iFlex\The Listing Decision.ppt

4. Performance at a Glance
*On account of one time Transitional Loans of Rs 18,188 Cr
5 Year CAGR : 10%
5 Year CAGR : 11%
5 Year CAGR : 13.5%
5 Year CAGR : 12%

5. Financial Performance at a Glance (As on 31.03.2017)
Financial Assistance to Indian Power Sector
Cumulative Loan Sanctions Rs Lakh Crore
Cumulative Loan Disbursements Rs Lakh Crore
Outstanding Loan sanctions Rs Lakh Crore
Performance
Loan Assets Rs Lakh Crore
Net worth (all reserves) Rs. 36,470 Crore
Borrowings
Total borrowing outstanding Rs Lakh Crore
(Bonds - 94%, Rupee Term Loans –2%, FCLs – 4%)

6. Borrowing Profile 31.3.2017 31.3.2016 Borrowings Amount % Bonds
(Y/E – March, Rs. Crore)
Borrowings
Amount %
Bonds
190,911
94%
172,339
86%
Term Loans
9,277 5%
20,574
10%
Short Term Loans
2,401 1%
7,572 4%
Total
202,588
100%
200,484
of which
Rupee Denominated
194,144
96%
189,709
95%
Foreign Currency Loans
8,444
10,776

7. Section 54EC of Income Tax Act, 1961
Section 54EC of Income Tax Act, 1961 provides that capital gain to the extent of Rs. 50 lakhs arising from the transfer of a long-term capital asset shall be exempt if the assessee invests the whole or any part of capital gains in capital gain bonds issued by the NHAI or by REC, within the specified time.
The Finance Act, 2017 amended Sec 54EC to widen its scope so as to provide that investment in any bond redeemable after three years which has been notified by the Central Government in this behalf shall also be eligible for exemption.
Ministry of Finance, Government of India vide its notification no 47/2017 dated has notified any bonds redeemable after three years and issued on or after by Power Finance Corporation Limited as long term specified asset for the purpose of 54EC of Income Tax Act, 1961.

8. PFC Capital Gains Tax Exemption Bonds
PFC Capital Gains Tax Exemption Bonds – Series 1 launched on private placement ‘on tap’ basis w.e.f
Eligible investors
Individuals
Financial Institutions (FIs)
Hindu Undivided Families (HUF)
Foreign Portfolio Investors (Subject to existing regulations)
Partnership firm
Regional Rural Banks
Insurance Companies
NRIs/other foreign eligible investor investing out of NRO A/c on non-repatriable basis
Companies and Body Corporates
Provident Funds, Superannuation Funds and Gratuity Funds
Co-operative Banks
Banks
Limited liability Partnership
Mutual Funds

9. Bond Issue Details
PFC Capital Gains Tax Exemption Bonds – Series 1 are Secured, Redeemable, Non Convertible, Non-Cumulative, Taxable Bonds in the nature of Debentures having benefits under Section 54 EC of Income Tax Act, 1961
Issue Size : Rs. 500 crore + Green Shoe option to retain oversubscription
Face Value : Rs. 10,000 (Rupees Ten Thousand only) per bond
Issue Price : At Par i.e. Rs. 10,000 per bond
Coupon Rate : 5.25 % per annum
Issue Opening Date : July 03, 2017
Issue Closing Date : March 31, 2018
Minimum application size : 2 bonds of Rs. 10,000 each (Rs. 20,000)
Maximum application size : 500 bonds of Rs. 10,000 each (Rs. 50,00,000)
Tenor : 3 years from the deemed date of allotment
Redemption Amount : At par (Rs. 10,000 per bond)

10. Bond Issue Details
Deemed Date of allotment : Last day of each month in which the subscription money is received and credited to PFC Capital Gain Bond collection account
Record Date : 15 calendar days prior to actual interest/principal payment date
Coupon Payment Date : Every year on 31st July till redemption and balance along with redemption
Date of Redemption : At the end of 3 years from the Deemed Date of Allotment
Issuance mode of instrument : Demat / Physical mode
Transferability : Non-transferable, Non-Marketable, Non-negotiable and cannot be offered as a security for any loan or advance
Listing : The Bonds will not be listed on any stock exchange due to non-transferability during the tenure of Bonds

11. Parties to the Issue Registrar & Transfer Agent
Karvy Computershare Pvt. Ltd
Trustees
Milestone Trusteeship Services Pvt. Ltd.
Depository
National Securities Depository Ltd. (NSDL)
Central Depository Services (India) Ltd. (CDSL)
Collection bankers
State Bank of India
Kotak Mahindra Bank
Indusind Bank
HDFC Bank
YES Bank
ICICI Bank

12. THANK YOU