PFC Secures Historic $1.265 Billion Foreign Loan

State-owned Power Finance Corporation (PFC) has secured the largest-ever foreign currency term loan for an Indian PSU, totaling USD 1.265 billion. This funding will support PFC's goal of decarbonization and green energy transition. The loan, with a five-year tenor, involves multiple banks and diversifies PFC's funding sources.

In a groundbreaking development, the Power Finance Corporation (PFC), a state-owned entity, announced on Friday the successful acquisition of a record-breaking foreign currency term loan worth USD 1.265 billion. This transaction sets a new precedent for Indian public sector undertakings.

The deal was executed through a complex facility agreement involving several banks located in IFSC GIFT City, Gandhinagar. This strategic financial move aligns with PFC's commitment to non-thermal asset financing, marking a significant stride toward decarbonization and green energy transition.

Presenting a major boost to PFC's operational capabilities, the multi-currency funding at an average floating rate of 4.21% annually will be deployed over a five-year tenure. The financing, tied to external benchmark rates and featuring USD, EUR, and JPY currencies, is aided by lenders including SBI, IDBI, Axis, MUFG, Deutsche, and SMBC.

(With inputs from agencies.)