PFC secures USD 1.265 billion, the largest-ever foreign currency term loan by an Indian PSU
On 4 October 2024, in India, Power Finance Corporation announced it had closed a USD 1.265 billion foreign currency term loan, the largest-ever by an Indian PSU, through banks based in IFSC GIFT City.
Summary
On 4 October 2024, in India, Maharatna company Power Finance Corporation (PFC) announced the closing of a USD 1.265 billion foreign currency term loan, the largest-ever by an Indian PSU, executed through a facility agreement with banks based in IFSC GIFT City, Gandhinagar. The 5-year floating rate loan, at an average of 4.21% a year, is denominated in G3 currencies - USD, EUR and JPY - and will mainly finance assets other than thermal generation projects. SBI was the largest lender and facility agent.
Key facts
- Announced
- 4 Oct 2024
- Amount
- USD 1.265 billion (largest by an Indian PSU)
- Currencies
- USD, EUR, JPY (G3)
- Tenor / rate
- 5 years; ~4.21% p.a. floating
- Executed via
- Banks in IFSC GIFT City
- Largest lender
- SBI
Practice MCQs 2 questions
What was the size of the foreign currency term loan announced by Power Finance Corporation on 4 October 2024, the largest-ever by an Indian PSU?
Show answer
Correct answer: B — USD 1.265 billion
PIB (4 Oct 2024): PFC closed the largest-ever foreign currency term loan from an Indian PSU amounting to USD 1.265 billion.
PFC's USD 1.265 billion term loan of October 2024 is denominated in which currencies?
Show answer
Correct answer: C — USD, EUR and JPY
PIB (4 Oct 2024): the floating rate loan is denominated in G3 currencies - USD, EUR and JPY - with a 5-year tenor.