Power Finance Corporation (PFC) has entered into a loan agreement worth Rs 65 billion (JPY 120 billion) with the Japan Bank for International Cooperation (JBIC). JBIC will provide Rs 40.04 billion (JPY 72 billion) of the total funding, with the remaining amount to be contributed by commercial banks.
The funding is part of JBIC’s “Global Action for Reconciling Economic Growth and Environmental Preservation” initiative, which supports projects aimed at reducing greenhouse gas emissions and promoting environmental preservation. The funds will be used by PFC to finance renewable energy projects The loan offers a long tenure of up to 20 years, reflecting a significant scale-up from the previous credit line utilised by PFC in 2024.
In October 2024, PFC raised $1.265 billion through a foreign currency term loan with participation from multiple banks, including SBI, IDBI, Axis Bank, MUFG, Deutsche, and SMBC, to finance non-thermal energy projects and support business expansion.
