PFC Secures 120 Billion Yen Loan from JBIC to Support Renewable Energy Projects
Summary
PFC secures 120 billion yen (6,600 crore) loan from JBIC under the GREEN initiative to fund Indias renewable energy projects with a 20-year tenor.Power Finance Corporation (PFC), a government-owned financial institution, has entered into an agreement with the Japan Bank for International Cooperation (JBIC) to secure a \xa5120 billion (approximately 6,600 crore) loan for renewable energy initiatives. The agreement, signed on Wednesday, marks the largest green financing deal JBIC has ever executed with an Indian company.Power Finance Corporation Ltd was trading at 437.65, as of 10:28 AM on January 17, up 0.52% today, with a 20.08% drop over 6 months but an 11.49% gain over the past year.Under the agreement, JBIC will provide \xa572 billion, while the remaining amount will be funded by commercial banks. The long-term loan, with a tenor of up to 20 years, will be utilized by PFC to finance renewable energy projects as part of Indias transition to non-fossil fuel-based energy sources.The funding comes under JBICs Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative, which supports projects aimed at reducing greenhouse gas emissions and preserving the global environment. Its FY24 annual report talks about plans to grow its lending by maintaining its share in conventional sectors while diversifying into emerging power and infrastructure projects. The company aims to establish itself as a nodal agency for Indias net zero goals.Disclaimer: This blog has been written exclusively for educational purposes.