PFC Secures Historic $1.265 Billion Foreign Currency Term Loan, Signaling Commitment to Green Energy Transition
In a landmark financial move, Power Finance Corporation (PFC), one of India’s premier Maharatna public sector undertakings (PSU), has successfully secured the largest-ever foreign currency term loan of $1.265 billion. The transaction was facilitated through a multi-bank agreement in the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar.
This strategic loan, obtained at an average floating rate of 4.21% per annum, is denominated in USD, EUR, and JPY. The loan is pegged to international benchmark rates such as SOFR (USD), EURIBOR (EUR), and TONA (JPY), offering PFC diversified and competitive financial flexibility over a five-year period.
The funds raised will be primarily allocated towards non-thermal power projects, underscoring PFC’s commitment to sustainable energy initiatives. The term loan will enable PFC to enhance its market presence, diversify funding sources, and contribute to India’s ongoing shift towards green energy, moving away from carbon-intensive projects.
State Bank of India (SBI), along with IDBI Bank, Axis Bank, MUFG, Deutsche Bank, and Sumitomo Mitsui Banking Corporation (SMBC), played a pivotal role in the execution of this transaction, with SBI acting as the largest lender and facility agent.
The successful closure of this deal highlights PFC’s growing reputation in the global financial markets and its pivotal role in India’s transition towards a decarbonized energy future.
