The Reserve Bank of India (RBI) granted a No Objection letter to Power Finance Company on January 9, allowing the establishment of a finance company in the International Financial Services Centre (IFSC) located in GIFT City, Gujarat. The company’s foray into the IFSC is anticipated to unlock fresh business prospects and solidify its global footprint, according to an exchange filing.
Having sought regulatory approval last year, Power Finance Company has recently expanded its market borrowing to Rs 1.05 lakh crore, up from the initially planned Rs 80,000 crore for the current fiscal year. The revised borrowing program encompasses various debt segments, including bonds, debentures, term loans, and external commercial borrowings, accessible through public or private placements.
In a filing, the company stated, ‘The funds under the said revised market borrowing program will be raised, from time to time, during the financial year 2023-24, with the approval of the competent authority as per powers delegated in this regard by the Board of Directors.’
Preceding this development, Power Finance Corporation had inked a preliminary agreement with the Gujarat government to offer extensive financial support for the state’s generation, transmission, and distribution projects.
The MoU signed by Parminder Chopra, CMD PFC, and Jai Prakash Shivhare, MD (GUVNL), in the presence of Bhupendra Patel, Chief Minister of Gujarat, underscores the commitment to providing comprehensive financial backing for the mentioned projects.
