PFC NCD Issue Jan 2026: AAA Rated Bonds Offering up to 7.30%

In a volatile market, stability is king. Power Finance Corporation (PFC), a government-backed Maharatna company, has launched a new Non-Convertible Debenture (NCD) issue offering interest rates up to 7.30% for retail investors.

If you are looking for fixed returns with high safety, here is everything you need to know about the PFC NCD Tranche I issue.

Offer at a Glance

• Issuer: Power Finance Corporation Limited (Maharatna CPSE).

• Credit Rating: AAA/Stable by CRISIL, CARE, and ICRA (Highest Degree of Safety).

• Issue Opens: Friday, January 16, 2026.

• Issue Closes: Friday, January 30, 2026.

• Face Value: ₹1,000 per NCD (₹1 Lakh for Zero Coupon Series III).

• Minimum Investment: ₹10,000 (10 NCDs).

What are the Interest Rates?

PFC is offering different rates based on the tenure you choose. For Retail Investors (Category IV), the coupon rates are as follows:

Tenure	Interest Payment	Coupon Rate (p.a.)	Effective Yield
5 Years	Annual	7.00%	7.00%
10 Years	Annual	7.20%	7.19%
15 Years	Annual	7.30%	7.29%
15 Years	Cumulative	NA	7.30%

Note: There is also a 10-Year Zero Coupon bond (Series III) issued at a discount, but the minimum application for this specific series is approx. ₹50,780 for retail investors.

Key Terms Explained

If you are new to bonds, here is a quick jargon-buster:

• NCD (Non-Convertible Debenture): A fixed-income financial instrument used by companies to raise long-term capital. Unlike convertible debentures, these cannot be converted into shares.

• AAA Rating: This is the highest credit rating possible. It indicates that the issuer (PFC) has a very strong capacity to meet its financial commitments. It implies the lowest credit risk.

• Secured NCD: The money you invest is backed by the company’s assets. In the unlikely event of a default, secured claim holders have the first right to the assets.

• Maharatna CPSE: PFC is a “Maharatna” Central Public Sector Enterprise. This status is given by the Government of India to top-performing public sector companies, giving them greater operational freedom.

Why Consider This Offer?

1. Safety: It holds the highest credit rating (AAA) and is government-backed.
2. Regular Income: Annual interest payment options are excellent for retirees or those seeking cash flow.
3. Liquidity: These NCDs will be listed on the NSE, allowing you to sell them before maturity if you need funds (subject to market liquidity).

Important: Check Your Asset Allocation First

While a 7.30% AAA-rated return is attractive, it is vital not to ignore your overall financial health.

• Don’t over-concentrate: Ensure you don’t put all your eggs in one basket.
• Taxation: Interest from NCDs is taxed according to your income tax slab. If you are in the 30% bracket, your post-tax return will be lower.
• Goal Alignment: Does a 15-year lock-in align with your financial goals?

Investing is never about just one good product; it is about how that product fits into your specific puzzle.

Ready to Invest?

Navigating the bond market can be complex. If you want to understand if this PFC NCD fits your risk profile and asset allocation, let’s have a conversation.

Connect with Meta Investment today to plan your application.

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Disclaimer: Investments in debt securities involve risks. Please read the offer document carefully before investing.