PFC to get Yen-denominated loan worth Rs. 6,500 crore from JBIC
Notable because
The total value of the loan is JPY 120 billion (INR 6500 crore), which includes partial funding of JPY 72 billion (INR 1500 crore) from the Japan Bank for International Cooperation (JBIC), with the remainder to be mobilised from commercial banks.
The purpose of the loan is to finance RE projects in India.
This facility is extended under JBIC’s GREEN mechanism, which extends green finance through loans, guarantees, and equity while mobilising private-sector funds.
What to look out for in the months ahead
This loan represents the largest green financing agreement signed by JBIC in India, with finance blended from various sources.
The loan is another important milestone for Power Finance Corporation (PFC), which has been reducing finance for coal-fired plants.
Could this serve as a model for PFC to attract additional blended finance for its green projects in India?
Can this agreement help other Indian infrastructure finance companies secure comparable agreements with multilateral development banks?