PFC Secures Landmark Green Loan from Japan's JBIC

State-owned PFC has signed a significant loan agreement with Japan Bank for International Cooperation (JBIC) for 120 billion Japanese yen. This loan will fund PFC's renewable energy projects, marking JBIC's largest green financing deal in India. The agreement signifies strengthened Japan-India economic and environmental collaboration.

State-owned Power Finance Corporation (PFC) announced on Thursday that it has formalized a substantial agreement with the Japan Bank for International Cooperation (JBIC) for a loan facility worth 120 billion Japanese yen, approximately Rs 6,600 crore.

The deal, signed on Wednesday, stipulates that JBIC will provide JPY 72 billion, with the remainder sourced from commercial banks. The funds are earmarked to boost PFC's renewable energy projects under JBIC's 'Global Action for Reconciling Economic Growth and Environmental Preservation' (GREEN) initiative.

This collaboration marks the largest green financing arrangement JBIC has undertaken with an Indian entity, highlighting enhanced bilateral cooperation as noted by officials from both nations present at the signing. Chopra, PFC's CMD, emphasized the long-term benefits and scale of the new credit line compared to past agreements.

(With inputs from agencies.)