PFC secures largest-ever foreign currency term loan of USD 1.265 bn

New Delhi, Oct 4 (PTI) State-owned Power Finance Corporation (PFC) on Friday announced that it has secured the largest-ever foreign currency term loan of USD 1.265 billion.

This landmark transaction was executed through a facility agreement with multiple banks based in IFSC GIFT City, Gandhinagar, a company statement said.

According to the statement, PFC announced successful closing of issuance of largest-ever foreign currency term loan from an Indian PSU amounting to USD 1.265 billion.

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 an average rate of 4.21 per cent per annum, denominated in G3 currencies — USD, EUR, and JPY — has a 5-year tenor and is linked to external benchmark rates such as Secured Overnight Financing Rate (SOFR) for USD, Euro Interbank Offered Rate (EURIBOR) for EUR, and Tokyo Overnight Average Rate (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.