Taking advantage of falling yields, the Power Finance Corporation (PFC) would look to raise Rs 4,000 crore through tax-free infrastructure bonds in the last week of December. The power sector lender is mulling the coupon it would be offered in a falling interest rate scenario.

"Bonds with tenure of 10 and 15 years would be issued to the investors," Satnam Singh, chairman and managing director, told.

The government-controlled non-banking financial company (NBFC) had earlier decided to issue the bonds in mid-December. However, with the Reserve Bank of India hinting at reversal of the monetary policy stance, the easing of yields has made the company delay its plan by a couple of weeks.

"We have been zeroing in on the coupon we would offer. It should be 8.3-8.4 per cent. Now that government yields are falling, we are deciding on what to offer to our investors," he said. The yields on 10-year government bonds have fallen to 8.32 per cent to 8.5 per cent since December 14.