Power Finance Corporation (PFC) has inked a project loan agreement with the Japan Bank for International Corporation (JBIC) for a ¥2.6 billion (~$20.2 million) facility.

PFC would use the funds under the facility to finance its renewable energy portfolio and provide competitive rates.

Under the agreement, the Japan Bank would finance some of PFC’s clean projects that are aimed at mitigating greenhouse gas emissions while establishing sustainable solutions in eco-friendly operations.

The PFC-JBIC pact was executed in July last year under a general agreement for a total loan of ¥30 billion (~$220.8 million).

JBIC is a policy-based financial institution in Japan and conducts lending, investment, and guarantee operations while complementing the private sector financial institutions.

The long-term facility to PFC is under the JBICs initiative titled ‘Global action for Reconciling Economic growth and Environmental preservation,’ under which the latter finances projects to reduce greenhouse gas emissions and conserve the global environment.

The loan agreement was signed at JBIC headquarters in Tokyo, between PFC Chairman and Managing Director R S Dhillon and Uchida Makoto, Managing Executive Officer of JBIC. PFC tweeted on the development, “PFC has signed a Project Loan Agreement (PLA) for JPY 2.65 billion with Japan Bank for International Cooperation (JBIC) at a Project Loan Agreement (PLA) signing ceremony held at JBIC Head Quarters, Tokyo, Japan.”

India recently hailed the Intergovernmental Panel on Climate Change’s Synthesis Report, highlighting that the developed countries are yet to receive the $100 billion funding under the Paris Climate Accord from developing countries.

The report highlighted that the funds would help developing nations with the required technology needed to help cut greenhouse gas emissions.

In 2022, the Power Finance Corporation disbursed loans of over ₹1,068.7 billion (~$12.9 billion) for clean operations and projects in India, up by 28% year-over-year. The higher loan disbursements fuelled the company’s robust performance for the year.

According to a report by the International Energy Agency, energy-related carbon emissions increased by 1% last year, which is lower than expected.