Power Finance Corporation prepares Rs10,000 crore bond blitz as banks desert energy sector
Power Finance Corporation, India’s largest power sector financier, plans to raise Rs10,000 crore through public bond markets as traditional bank lending to energy infrastructure projects contracts sharply. The state-owned financial institution’s move reflects broader funding pressures across India’s power sector development pipeline.
Banking sector analysts indicate that commercial lenders have become increasingly cautious about power sector exposure following historical stress in thermal generation assets. Non-performing assets in the power sector have prompted banks to tighten lending criteria, creating funding gaps for both generation and transmission projects.
PFC’s bond issuance strategy targets institutional investors including insurance companies, pension funds, and ...
