State-owned PFC raises largest-ever foreign currency term loan of $1.2 billion

New Delhi: State-owned Power Finance Corporation (PFC) on Friday said it has secured the largest-ever foreign currency term loan of $1.265 billion from banks in IFSC GIFT City, Gandhinagar.

The loan, at an average rate of 4.21 per cent per annum, will be used to finance non-thermal generation projects, promoting green energy transition, said PFC, a Maharatna company and leading NBFC in the Indian power and infrastructure sector.

According to the Ministry of Power, 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.

As per the ministry statement, the floating rate loan, presently at average rate of 4.21 per cent per annum, denominated in G3 currencies — USD, EUR and JPY — has a 5-year tenure and is linked to external benchmark rates such as SOFR for USD, EURIBOR for EUR, and TONA for JPY.

According to PFC, the State Bank of India (SBI) was the largest lender, and also acted as facility agent for this transaction.

PFC’s net profit rose for the first quarter of fiscal 2025. The lender’s standalone net profit increased 23.6 per cent year-on-year to Rs 3,718 crore, according to an exchange filing.

 Total income for the lender rose 17.5% year-on-year to Rs 11,916 crore, as against Rs 10,142 crore reported in the same quarter in the previous year.

Late last month, the Mumbai Metropolitan Region Development Authority (MMRDA) secured a major loan of Rs 31,673.79 crore from the PFC to finance nine crucial infrastructure projects that will transform Mumbai Metropolitan Region’s (MMR) transportation landscape.