About PFC
- One of Navratna companies in the Indian PSU space
- Consistently profitable over the last 12 years with a dividend payout ratio of over 30%
- Current market cap of over 21,500 cr
- PFC owns 52.63% in REC which was acquired from GoI by paying 14,500 cr in March,2019
About the Bond
- Coupon: 7.79%
- Credit Rating: CRISIL AAA/Stable, ICRA AAA/Stable
- Maturity Date: 22-Jul-30
- Last Interest payment: date:22-May-20
- Yield to maturity: 7.25%
- Next interest date: 24-May-2021
- Min Investment: 10 Lakhs and in multiples thereafter
- Eligible investors: Individuals, Corporates, Trust, NRI’s
Key highlights
- AAA rated Navratna PSU. More than 50% owned by Government of India
- Higher yield than bank FD’s
- No TDS implication means higher cash-flows
- Lock in high rates for a maturity in 2030.
- In declining interest rate environment, high chances of capital gains
The cashflow details
Bond 7.79% PFC 2030 Yield to Investor 7.25% Maturity Date 22-Jul-30 Amount in Lacs 10.00 Price 103.75 Last Interest Payment date 22-May-20 Amount to be Collected 1,040,488
Date Amount 5-Jun-20 Investment Amount : 1,040,488 May 24, 2021 77,900 May 23, 2022 77,900 May 22, 2023 77,900 May 22, 2024 77,900 May 22, 2025 77,900 May 22, 2026 77,900 May 24, 2027 77,900 May 22, 2028 77,900 May 22, 2029 77,900 May 22, 2030 77,900 July 22, 2030 Interest + Principle 1,013,019
Bond | 7.79% PFC 2030 |
Yield to Investor | 7.25% |
Maturity Date | 22-Jul-30 |
Amount in Lacs | 10.00 |
Price | 103.75 |
Last Interest Payment date | 22-May-20 |
Amount to be Collected | 1,040,488 |
Date | Amount |
5-Jun-20 | Investment Amount : 1,040,488 |
May 24, 2021 | 77,900 |
May 23, 2022 | 77,900 |
May 22, 2023 | 77,900 |
May 22, 2024 | 77,900 |
May 22, 2025 | 77,900 |
May 22, 2026 | 77,900 |
May 24, 2027 | 77,900 |
May 22, 2028 | 77,900 |
May 22, 2029 | 77,900 |
May 22, 2030 | 77,900 |
July 22, 2030 | Interest + Principle 1,013,019 |