PTC India Financial Services (PFS) has raised $25-million overseas loans for financing power projects.
PFS, an arm of PTC India, has raised external commercial borrowings (ECBs) from International Finance Corporation aggregating $25 million (about Rs 125 crore), an official statement said.
The ECBs will help in lowering the interest cost of the company significantly.
The company had entered into loan agreements with IFC in 2011 for availing ECBs worth $50 million to finance the projects. The ECBs are repayable in 32 quarterly instalments.
The disbursement of balance facility available will help in bringing down the borrowing costs in the coming years, thereby improving the spread and net interest margin.
PFS focuses on infrastructure development, which includes debt (short-term and long-term) financing and making equity investments in private sector Indian companies.