India’s Maharatna business Power Finance has refinanced the Adani Green loan for more than Rs 9,000 crore. Power Finance Corporation refinanced an Adani Green construction-linked credit worth $1.06 billion (Rs 9,261 crore). Power Finance has also given a fixed-rate loan for the whole time, promising to retain it till maturity.
Maharatna PSU Seals Rs. 9,261 Crore Deal to Refinance Adani Green Loan – A Record-Breaking Move in Renewable Energy?
According to Bloomberg, this is projected to be the state-owned lender’s largest renewables transaction to date.
According to Bloomberg, the lender allegedly provided a fixed-rate loan for the full time and agreed to retain it till maturity at the end of 19 years.
The borrower stated in a press statement on Monday that three rating agencies gave the refinancing facility an AA+ grade and a stable outlook.
The decision reflects the lender’s increased emphasis on developing green energy portfolios as the government strives to reduce carbon emissions.
According to BloombergNEF, India, the world’s third-largest carbon emitter, will need to invest $12.4 trillion to achieve net zero by 2070. In January, PFC and Japan Bank for International Cooperation completed the largest green finance agreement, paying ¥120 billion (Rs 6,500 crore).
Adani Green share price
Adani Green Energy shares closed at Rs 804.50 per share, up 30.45 or 3.93 percent from the previous closing of Rs 774.05 on Monday.
Power Finance’s share price
On Monday, March 3, Power Finance shares finished higher at Rs 379.70 a share, up 15.40 points or 4.23 percent from the previous closing of Rs 364.30.
As of the recent closing, the PSU stock had down 15.31% year to date and 32.08% over the previous six months. Meanwhile, in terms of long-term returns, PFC shares have doubled the wealth of its owners, increasing by 205.91 and 331.48 percent over the previous two and three years, respectively.
