New Delhi: Power Finance Corporation (PFC) has signed a loan agreement for EUR 200 million with Germany's KfW on Friday. This is a financial assistance from the government of the Federal Republic of Germany. PFC will on-lend these funds for the development of the distribution infrastructure of state-owned Companies.
The agreement was signed by Rajeev Sharma, PFC CMD and Dr Christoph Kessler, Director, KfW Office, India and exchanged in the presence of Sanjiv Nandan Sahai, Secretary, Power, Vivek Kumar Dewangan, Joint Secretary, Ministry of Power, Morbert Barthle, Parliamentary State Secretary, Federal Ministry for Economic Cooperation & Development and Christian Hirte, Parliamentary State Secretary, Federal Ministry for Economic Affairs & Energy of Germany.
The PFC CMD has informed that the loan carries a concessional rate of interest and will help PFC fund state discoms and reduce its cost of borrowing.
The KfW, formerly KfW Bankengruppe (banking group), is a German state-owned development bank, based in Frankfurt. Its name originally comes from Kreditanstalt für Wiederaufbau ("Credit Institute for Reconstruction"). It was formed in 1948 after World War II as part of the Marshall Plan. It was Germany's third-largest bank by the balance sheet in 2018.
Incorporated on July 16, 1986, PFC Ltd is a Schedule-A Navratna CPSE, and is a leading non-banking financial corporation in the country. PFC's registered office is located at New Delhi and regional offices are located at Mumbai and Chennai.