Power Finance Corporation Withdraws Zero-Coupon Bond Issue Amid Investor Yield Demands

India’s Power Finance Corporation (PFC) has withdrawn its planned zero-coupon bond issuance after investors sought higher-than-expected yields. The state-owned entity had initially aimed to raise funds through long-term bonds but faced limited interest due to pricing concerns.  

 

Key Highlights  

Market Dynamics And Investor Sentiment  

Industry Perspective  

 

The decision to withdraw the bond issuance highlights the challenges faced by issuers in pricing long-term debt instruments amid fluctuating market conditions. While PFC remains a key player in India’s infrastructure financing, the move underscores the need for strategic adjustments in bond offerings to align with investor expectations.  

 

Sources: NDTV Profit, Economic Times, Business Standard.