PFC raises onshore borrowing limit to INR 9 tln, and $25 bln for FX loans
This story was originally published at 18:44 IST on 23 July 2026
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--PFC: Borrowing limit raised to borrow for co or on behalf of govt
--PFC ups domestic borrowing limit to INR 9 tln, FX loan limit to $25 bln
MUMBAI – Power Finance Corp. Ltd. Thursday raised its borrowing limit to INR 9.00 trillion in rupee-denominated borrowing and the equivalent of $25 billion in any foreign currency, it informed exchanges. The board Thursday approved fundraising "from time to time" for business of the company or on behalf of the central government, provided that the total quantum borrowed and outstanding at any point of time does not exceed the mentioned figures.
The board of the state-owned financier had in March approved a borrowing limit of INR 1.6 trillion for 2026-27 (Apr-Mar), of which INR 200 billion was allocated to foreign-currency fundraising. The company last issued $300 million worth of dollar-denominated notes at 110 basis points over the secured overnight financing rate on Jul. 10. The issuance was made under the company's $8-billion global medium-term note programme, it had said. It had also raised $300 million worth of dollar-denominated notes under the programme at a semi-annual coupon of 5.32% on Jun. 22.
The announcement comes amid the Reserve Bank of India's concessional swap facility rolled out last month for public sector undertakings' external commercial borrowings, offering a concessional rate of 1.5% per annum. Informist had Friday reported that the central bank is aiming for foreign inflows of about $30 billion by December through this route. From Jun. 8--when the concessional scheme was rolled out—till Friday, inflows through external commercial borrowing by public-sector undertakings were $1.34 billion, as per data released by the RBI Friday.
The company is currently undergoing a merger with state-owned peer REC Ltd. The boards of both entities had approved the merger last month. Thursday, shares of PFC closed 0.55% lower at INR 410.05 apiece on the National Stock Exchange. For the March quarter, PFC had reported a net profit of INR 63.25 billion on total revenue of INR 153.19 billion. End
US$1 = INR 96.5725
Reported by Cassandra Carvalho
Edited by Deepshikha Bhardwaj
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