08 Oct 2024
On Friday, the state-owned Power Finance Corporation (PFC) announced that it has successfully obtained its largest foreign currency term loan, totalling USD 1.265 billion. This significant milestone was achieved through a facility agreement with several banks situated in IFSC GIFT City, Gandhinagar, as per a company statement.
According to the statement, PFC has announced that it successfully completed the largest foreign currency term loan issuance ever by an Indian public sector undertaking, totalling US$ 1.265 billion. The loan will be primarily used to finance assets other than thermal power generation projects, reinforcing PFC's strong commitment towards decarbonisation and the transition to green energy.
Multi-currency funding will enable PFC to broaden its operations, strengthen its market presence, diversify its funding sources, and sustain its competitive advantage.
Floating rate loans, which currently have an average interest rate of 4.21% per year, are issued in G3 currencies (USD, EUR, and JPY). These loans have a term of 5 years and are tied to external benchmark rates, including the Secured Overnight Financing Rate (SOFR) for USD, the Euro Interbank Offered Rate (EURIBOR) for EUR, and the Tokyo Overnight Average Rate (TONA) for JPY.
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