PFC partners with SACE to enhance cooperation between India and Italy

State-owned Power Finance Corporation (PFC) on Friday said it has become the first government firm to collaborate with SACE, an Italian export credit agency, to boost the cooperation between the two countries.

PFC is partnering with SACE, the export credit agency of Italy, for an innovative ECA-backed financing facility under its 'Push Strategy' initiative, according to a statement.

This proposed partnership will position PFC as the first government-owned entity in India to partner with SACE under this initiative.

Through this structure, PFC will benefit from an 80 per cent guarantee from SACE, with HSBC acting as a coordinating bank, lead arranger and facility agent for the financing of up to 200 million euros.

Further, the envisaged financing under the 'Push Strategy' will provide project owners across India an opportunity to access Italian technology and collaborate with Italian companies through business-matching activities.

"PFC has always been at the forefront of exploring innovative foreign currency borrowing avenues," Parminder Chopra, Chairman and Managing Director of PFC, said in the statement.

She said that this unique deal among PFC, SACE, and HSBC is the first of its kind.

This strategic alliance under SACE's 'Push Strategy' will help strengthen India-Italy business relationships and provide access to Italian technologies for the power and infrastructure sectors, she added.