Power Finance Corporation (PFC), a Maharatna company and one of India’s leading non-banking financial corporations (NBFC) in the power and infrastructure sector, announced the successful closure of its largest-ever foreign currency term loan issuance. The loan, amounting to USD 1.265 billion, marks a significant milestone as the largest such transaction by an Indian public sector undertaking (PSU).
This landmark transaction was facilitated through a facility agreement with multiple global banks based in the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar. The funding will be primarily directed towards financing projects outside the thermal power generation space, reflecting PFC’s strong commitment to supporting India’s decarbonization efforts and its ongoing transition towards green energy solutions.
The multi-currency funding, comprising USD, EUR, and JPY, will enable PFC to not only expand its operations but also diversify its funding sources, strengthen its market position, and maintain a competitive edge in the rapidly evolving energy sector. The floating rate loan, with an average interest rate of 4.21% per annum, has a five-year maturity period and is linked to key external benchmark rates, such as the Secured Overnight Financing Rate (SOFR) for USD, EURIBOR for EUR, and the Tokyo Overnight Average Rate (TONA) for JPY.
A consortium of banks participated in the transaction, with the State Bank of India (SBI) emerging as the largest lender and acting as the facility agent for the loan. Other key banking partners included IDBI Bank, Axis Bank, MUFG Bank, Deutsche Bank, and Sumitomo Mitsui Banking Corporation (SMBC).
