Power Finance Corporation Inks Pact With JBIC For $220 Mn Loan

State-owned Power Finance Corporation (PFC) on Thursday inked a loan pact for JPY 30 billion with Japan Bank for International Cooperation (JBIC).

"PFC has signed a loan agreement for JPY 30 Billion with Japan Bank for International Cooperation (JBIC) on 7th July 2022," the company said in a statement.

JBIC has provided this long-term facility to PFC under its initiative 'Global action for Reconciling Economic growth and Environmental preservation' (GREEN), wherein JBIC provides financing for projects which ensure the effective reduction of greenhouse gas emissions and conservation of the global environment, it said.

Thus, the funds under the facility would be used by PFC to finance its renewable energy portfolio.

The loan agreement was signed by R S Dhillon, CMD, PFC and Kazushige Gobe, Director General, Social Infrastructure Finance Department, JBIC. It was signed in the presence of Parminder Chopra, Director (Finance) at PFC, R R Jha, Director (Projects) at PFC and Toshihiko Kurihara, Chief Representative, JBIC New Delhi office.

R S Dhillon said this facility from JBIC would be a landmark transaction demonstrating the Quad partners' strong unity and robust commitment to the Indo-Pacific region, while also enhancing the bilateral cooperation between Japan and India.

The facility would also help PFC in providing competitive rates for renewable power projects.

(PTI)