PFC signs 120 bn yen loan pact with Japan's JBIC for RE project

State-owned PFC on Thursday said it has inked an agreement with Japan Bank for International Cooperation (JBIC) for 120 billion Japanese yen (around Rs 6,600 crore) loan facility.

According to a PFC statement, under the agreement signed on Wednesday, JBIC will provide funding of JPY 72 billion, and the balance will be funded by commercial banks.

This long-term (up to 20 years ) loan to PFC will be provided under JBIC's initiative 'Global action for Reconciling Economic growth and Environmental preservation' (GREEN).

The funds will be utilized by PFC to finance its renewable energy portfolio, advancing India's transition to non-fossil-fuel-based energy sources.

This deal marks the largest green financing agreement ever executed by JBIC with any company in India.

The loan agreement was signed by Parminder Chopra, Chairman and Managing Director, PFC and Ogawa Kazunori, Senior Managing Director, JBIC in the presence of Takashi Ariyoshi, Minister & Deputy Chief of Mission, Embassy of Japan; Shibuya Atsuki, Deputy Director General, JBIC.

Chopra said this new credit line is 4 times larger than the previous one and provides a longer tenor of up to 20 years.