India’s Power Finance Shoulders $1 Billion Adani Green Refinancing

India’s Power Finance Corporation Ltd. refinanced an Adani Green construction-linked loan for $1.06 billion (92.61 billion rupees) in what could be the state-owned lender’s largest such deal in the renewables sector, according to people familiar with the matter. 

The lender is said to have offered a fixed rate loan for the full term with a commitment to hold it until maturity at the end of 19 years, said the people, who asked not to be identified because the information is not public.

It also underscores the lender’s growing focus on expanding green energy portfolios as the country looks to slash carbon emissions. India, the world’s third-largest carbon emitter, needs $12.4 trillion in investment to achieve its goal of reaching net zero by 2070, according to BloombergNEF. 

In January, PFC executed what was then its largest green financing agreement with Japan Bank for International Cooperation for ¥120 billion, or 65 billion rupees. 

Three rating companies rated the refinancing facility with a AA+ grade and a stable outlook, the borrower said in a release Monday.

Power Finance Corporation and Adani Green did not immediately reply to emails seeking comment.