Power Finance Corporation Ltd. (PFC), a Maharatna company and India’s largest Non-Banking Financial Company (NBFC), has signed a historic loan agreement with the Japan Bank for International Cooperation (JBIC) for JPY 120 billion (approximately ₹6,500 crore). The agreement was formalized on January 15, 2025. JBIC will fund JPY 72 billion, while the remaining amount will be financed by commercial banks.
This long-term facility is part of JBIC’s “Global action for Reconciling Economic growth and ENvironmental preservation” (GREEN) initiative, which focuses on financing projects that contribute to environmental preservation, including significant reductions in greenhouse gas (GHG) emissions. The funds will support PFC’s renewable energy portfolio, advancing India’s transition to sustainable, non-fossil-fuel energy sources. Notably, this deal represents the largest green financing agreement JBIC has ever executed with an Indian company.
The agreement was signed by Mrs. Parminder Chopra, Chairman and Managing Director (CMD) of PFC, and Mr. Ogawa Kazunori, Senior Managing Director (SMD) of JBIC. The ceremony was attended by dignitaries such as Mr. Takashi Ariyoshi, Minister and Deputy Chief of Mission at the Embassy of Japan; Mr. Shibuya Atsuki, Deputy Director General at JBIC; and Mrs. Jasneet Guram, Chief General Manager (Finance) at PFC.
Comments from Key Leaders
Mrs. Parminder Chopra highlighted the significance of the agreement:
“We successfully utilized the first credit line from JBIC in 2024. This new credit line, which is four times larger and offers a longer tenor of up to 20 years, underscores our commitment to promoting renewable energy. With support from international lenders like JBIC, PFC is well-positioned to play a pivotal role in realizing the Government of India’s vision for a non-fossil fuel-based energy future.”
Mr. Ogawa Kazunori emphasized the strong partnership between India and Japan:
“India is a strategically important partner for Japan. As a Japanese government financial institution, JBIC is dedicated to supporting sustainable economic development initiatives in India. This credit line, four times larger than our previous agreement, signifies our commitment to strengthening bilateral cooperation. Through closer collaboration with PFC, we aim to identify and develop a broader range of projects that enhance this partnership.”
