PFC raises $2.6 billion from JBIC for emission-reduction projects

Power Finance Corporation (PFC) has signed a loan agreement worth $20.2 million with Japan Bank for International Corporation (JBIC). The funds raised will be used by PFC to finance its renewable energy portfolio and provide competitive rates. JBIC agreed to finance some of PFC’s clean projects aimed at reducing greenhouse gas emissions while establishing sustainable solutions in environmentally friendly operations.

JBIC is a policy-based financial institution in Japan that lends, invests, and guarantees in addition to private-sector financial institutions. The long-term facility to PFC is under the JBICs initiative titled ‘Global action for Reconciling Economic growth and Environmental preservation,’ under which the latter finances projects to reduce greenhouse gas emissions and conserve the global environment.

In March 2022, Under Phase-Ill, Part H, PFC Consulting, a wholly-owned subsidiary of PFC, requested proposals for the development of an interstate transmission system (ISTS) to evacuate 20 GW of power from Rajasthan’s renewable energy zone.

In September 2021, PFC issued its 7-year Euro Bond, which is a green bond on September 13, 2021, raising Euro 300 million. This is India’s debut Euro-denominated green bond issuance and is the first Euro issuance by an Indian non-banking financial company. As per the release, the pricing of 1.84 percent achieved is the lowest yield locked in by an Indian issuer in the Euro markets. Institutional investors from Asia and Europe showed strong interest with participation from across 82 accounts and was oversubscribed 2.65 times.