PFC secures $1.265 billion foreign loan for green energy projects
PFC, recognised as a Maharatna company and a leading non-banking financial company (NBFC) in the Indian power and infrastructure sector, has successfully concluded the issuance of the largest foreign currency term loan ever by an Indian public sector unit (PSU), totalling $1.265 billion. This historic financial arrangement was made possible through a facility agreement with multiple banks located at the IFSC GIFT City in Gandhinagar.
The loan is intended to finance projects outside the thermal generation sector, representing a significant advancement in PFC's commitment to supporting the transition to green energy. This financing is in line with the company's strategic initiatives to diversify its investment portfolio towards more sustainable and renewable energy sources.
The loan carries a floating interest rate of 4.21 per cent per annum and has a tenure of five years. It is denominated in G3 currencies—USD, EUR, and JPY—and is benchmarked against external rates such as SOFR for USD, EURIBOR for EUR, and TONA for JPY. The banks involved in this substantial transaction include SBI, IDBI, Axis, MUFG, Deutsche, and SMBC. SBI not only served as the primary lender but also took on the role of the facility agent.
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