PFC secures largest foreign currency term loan of USD 1.265 billion
Notable because
The loan was facilitated through an agreement with multiple banks (SBI, IDBI, Axis Bank, MUFG, Deutsche and Sumitomo Mitsubishi Bank) based at the International Financial Services Centre at GIFT City, Gandhinagar. The multi-currency loan is denominated in G3 currencies—USD, EUR, and JPY—and has a five-year tenor. This is an important milestone in transition finance, considering the loan will finance green energy assets, in line with Power Finance Corporation’s (PFC) declining finance for coal.
What to look out for in the months ahead
Earlier this year, the PFC also inaugurated its subsidiary—PFC Infra Finance IFSC Limited, at GIFT City. How will the PFC broaden its activities at GIFT City to attract more green finance in the future? Will PFC’s recent initiatives encourage more green energy financiers to take advantage of GIFT City’s regulatory ecosystem?