MUMBAI: India's Power Finance Corp plans to raise at least 1.5 billion rupees ($23 million) via a private placement of tax-free bonds, according to a termsheet.

The issue is open to institutional investors and corporates, as per the document.

The firm will issue 10-year tax-free bonds at 8.04 percent, 15-year bonds at 8.41 percent, and 20-year bonds at 8.40 percent, as per the document.

The issue has a greenshoe option of 3.76 billion rupees and is rated AAA by Crisil, ICRA and Care rating agencies.