PFC raises $300 mn through 3-year loan

NEW DELHI: The Power Finance Corporation Ltd (PFC) has raised $300 million (Rs2070 crore) through a 3-year syndicated loan from State Bank of India (SBI), Hong Kong and MUFG Bank Ltd, Singapore.

PFC is the power sector’s leading financier with exposure to power generation, transmission and clean energy projects

This is PFC’s second foreign currency borrowing in the current quarter. Earlier, PFC raised $1 billion through issuance of Reg-S bonds, which was the biggest bond issuance overseas by a government owned NBFC.

By concluding the current $300 million deal, PFC has already mobilized $1.3 billion indicating investor’s confidence in PFC post acquisition of government shareholding of 52.63 per cent in Rural Electrification Corporation Ltd (REC).

The State-owned Power Finance Corporation (PFC) had acquired the Central government’s  52.63 per cent paid-up share capital in REC in March at a cost of about Rs14,500 crore.

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