PFC Secures Largest Ever Foreign Currency Term Loan for Renewable Energy
| Summary/Static | Details |
|---|---|
| Why in the news? | PFC (Power Finance Corporation), a Maharatna company, announced the largest-ever foreign currency term loan by an Indian PSU, amounting to USD 1.265 billion. |
| Company | Power Finance Corporation (PFC), a Maharatna company under the Indian Ministry of Power. |
| Established | 1986. |
| Sector | Indian power and infrastructure financing (NBFC). |
| Loan Amount | USD 1.265 billion (largest-ever by an Indian PSU). |
| Objective of Loan | Finance assets excluding thermal generation projects, focusing on renewable energy. |
| Purpose of Loan | Expand operations, diversify funding sources, enhance market presence, and maintain competitiveness. |
| Loan Details | Floating interest rate (average of 4.21% per annum), 5-year tenor. |
| Currency Denomination | G3 currencies: USD, EUR, and JPY. |
| Interest Rate Benchmarks | SOFR (USD), EURIBOR (EUR), TONA (JPY). |
| Facility Agreement | Executed through multiple banks based in IFSC GIFT City, Gandhinagar. |
| Banking Partners | SBI (largest lender and facility agent), IDBI, Axis Bank, MUFG, Deutsche Bank, SMBC. |
| PFC's Role | Financial backbone of the Indian power sector, financing generation, transmission, distribution, and RM&U projects. Also funds infrastructure projects with backward linkages to the power sector (coal mines, fuel transportation, oil & gas pipelines, etc.). |