RBI allows PFC to set up finance company in GIFT city

PFC's entry into the IFSC is expected to open up new business opportunities and establish PFC's global presence, the company said in a exchange filing

The Reserve Bank of India (RBI) on January 9 issued a No Objection letter to Power Finance Company for setting up a finance company in the International Financial Services Centre (IFSC) situated in GIFT City, Gujarat, the company said in an exchange filing.

“PFC's entry into the IFSC is expected to open up new business opportunities and establish PFC's global presence,” the exchange filing said.

The company had sought approval from the regulator last year.

Earlier this month, the company has raised its market borrowing to Rs 1.05 lakh crore.

The borrowing programme was for Rs 80,000 crore for the current financial year. The borrowing is under various debt segments such as bonds, debentures, term loans, external commercial borrowings and more on both, public or private placement basis.

“The funds under the said revised market borrowing programme will be raised, from time to time, during the financial year 2023- 24, with the approval of the competent authority as per powers delegated in this regard by the Board of Directors,” said the company in a filing with the bourses.

Prior to this, Power Finance Corporation has inked an initial pact with the Gujarat government to provide comprehensive financial backing for the state's generation, transmission, and distribution projects.

The MoU was signed by Parminder Chopra, CMD PFC and Jai Prakash Shivhare, MD (GUVNL) in the presence of Bhupendra Patel, Chief Minister of Gujarat.

The chief objective of this MoU is to provide comprehensive financial backing for the state's generation, transmission, and distribution projects.