State-owned lender to the energy sector, Power Finance Corporation’s (PFC) board has approved a plan to borrow up to ₹1.6 trillion (~$17.16 billion) from domestic and international markets through a wide range of instruments for the financial year (FY) 2026-27.

As per the plan, the company can raise up to ₹1.1 trillion (~$11.81 billion) through domestic long- and medium-term borrowings, including capital gain bonds, public issues or private placements of taxable or tax-free bonds, debentures and debt securities, fixed or floating rate, non-convertible, infrastructure, inflation-indexed, structured, market-linked, green, social, and ESG bonds.

This bucket also includes long- and medium-term loans from banks, financial institutions, and the government, including refinancings, as well as other domestic long- or medium-term borrowing instruments.

The board also cleared up to ₹200 billion (~$2.15 billion) in foreign-currency long- and medium-term borrowings.

These may include term loans, syndicated loans, subordinated loans, FCNR(B) loans, loans from multilateral agencies, unsecured or secured bonds, green bonds, subordinated bonds, and other instruments for raising foreign currency.

In addition, PFC can raise ₹200 billion (~$2.15 billion) through short-term domestic- or foreign-currency borrowings, and ₹100 billion (~$1.07 billion) through commercial paper, bringing the total approved borrowing ceiling to ₹1.6 trillion (~$17.16 billion).

The company clarified that funds raised and prepaid during the year will be excluded from this limit, and that borrowings under extra budgetary resources are also excluded.

On shareholder returns, the board declared a fourth interim dividend of ₹3.25 (~$0.034)/equity share of face value ₹10 (~$0.11) each, equivalent to 32.5%, subject to deduction of tax at source.

Recently, PFC announced that its merger with REC Limited was moving ahead in full steam, with execution plans being laid out to meet the statutory and regulatory requirements.

In January this year, PFC launched Tranche I of its public issue of secured, listed, and redeemable non-convertible debentures (NCDs), aiming to raise ₹50 billion (~$554.18 million) as part of its broader ₹100 billion (~$1.108 billion) shelf program.