PFC signs JPY 120 billion loan agreement with JBIC

New Delhi: Power Finance Corporation (PFC) on Thursday said that it has signed a Loan Agreement for JPY 120 billion (Rs 6,500 crore) with Japan Bank for International Cooperation (JBIC) on January 15. Under the agreement, JBIC will provide funding of JPY 72 billion, with the balance to be funded by commercial banks.

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JBIC provided this long term facility to PFC under JBIC's initiative titled 'Global action for Reconciling Economic growth and environmental preservation' (GREEN), wherein JBIC finance projects aimed at preserving the global environment ― such as projects that significantly reduce greenhouse gas (GHG) emissions. Thus, 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 landmark deal marks the largest green financing agreement ever executed by JBIC with any company in India.

The loan agreement has been signed by PFC's Chairperson and Managing Director (CMD) Parminder Chopra and JBIC's Senior Managing Director Ogawa Kazunori in the presence of Embassy of Japan's Minister & Deputy Chief of Mission Takashi Ariyoshi; JBIC's Deputy Director General Shibuya Atsuki and PFC's Chief General Manager (Finance) Jasneet Guram.

Speaking on the landmark loan agreement, PFC CMD said, “We have successfully utilised the first credit line from JBIC in year 2024. This new credit line is 4 times larger than the previous one and provides a longer tenor of up to 20 years. Promoting non-fossil fuel-based energy is a key priority for the Government of India. With the support of international lenders like JBIC, PFC will play a pivotal role in advancing this vision.”

“India is a strategically important partner for Japan. As a Japanese government financial institution, JBIC is committed to supporting various policy initiatives aimed at sustainable economic development in India. This credit line is four times the scale of the previous agreement. Through closer cooperation with PFC, we would like to focus on identifying and developing wider variety of projects that contribute to the strengthening and developing of Japan-India bilateral cooperation” said JBIC's OGAWA Kazunori.

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