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.