PFC Secures the Largest-Ever Foreign Currency Term Loan

Power Finance Corporation Ltd. (PFC) has recently closed issuance of largest-ever foreign currency term loan from an Indian PSU amounting to USD 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, furthering PFC’s 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 average rate of 4.21% per annum, denominated in G3 currencies – USD, EUR, and JPY – has a 5-year tenor and is linked to external benchmark rates such as SOFR for USD, EURIBOR for EUR, and TONA for JPY.

SBI, IDBI, Axis, MUFG, Deutsche & SMBC were the bankers to the issue with SBI being the largest lender and also acting as facility agent for this transaction.

PFC is under the administrative control of the Ministry of Power. The corporation plays a crucial role in the rise of India as a global player. Increasingly, a country’s development is gauged by measuring its energy usage. With a large fraction of our nation still, unfortunately, without any access to electricity, PFC will become an increasingly important factor in the years to come.

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