Parminder Chopra, Chairman & Managing Director of Power FInance Corporation Limited
New Delhi: The Power Finance Corporation (PFC) today announced the issuance of the largest-ever foreign currency term loan from an Indian Public Sector Undertaking (PSU) amounting to $1.265 billion. This landmark transaction was executed through a facility agreement with multiple banks based in IFSC GIFT City, Gandhinagar.
The loan will primarily be deployed towards financing assets other than thermal generation projects. The company said this will further its “strong” commitment to decarbonization and the transition to green energy.
The multi-currency funding will enable PFC to expand its operations, enhance its market presence, diversify its funding sources and maintain a competitive edge.
The floating rate loan, presently at an average rate of 4.21% per annum, denominated in G3 currencies—United States Dollar (USD), Euro (EUR), and Japanese Yen (JPY)—has a 5-year tenor and is linked to external benchmark rates such as Secured Overnight Financing Rate (SOFR) for United States Dollar, Euro Interbank Offered Rate (EURIBOR) for Euro, and Japan Tokyo Overnight Average Rate (TONA) for the Japanese Yen.
The State Bank of India, IDBI, Axis, Mitsubishi UFJ Financial Group (MUFG), Deutsche and the Sumitomo Mitsui Banking Corporation (SMBC) were the bankers to the issue with the State Bank of India being the largest lender and also acting as facility agent for this transaction.
PFC is a Maharatna company and a leading non-banking financial corporation (NBFC) in the power and infrastructure sector.
– global bihari bureau
