PTC India Financial Services bags credit facility from SBI

PTC India Financial Services (PFS) Monday said it has received a sanction for credit facilities of Rs 1,400 crore from State Bank of India (SBI). This arrangement also includes a partial credit enhancement (PCE) facility of Rs 400 crore, which will support Rs 2,000 crore bond issuance.

In November 2018, the Reserve Bank of India allowed banks to provide PCE limits to non-banking finance companies (NBFCs) in view of the cash crunch faced by such entities. The PCE mechanism will enhance the rating of the bond issue and allow NBFCs to raise funds at a lower cost. This would also bring additional comfort to the investor community including pension funds, insurance companies and mutual funds.

(With inputs from agencies.)