PTC India Financial Services (PFS) Monday said it has received a sanction for credit facilities of Rs 1,400 crore from State Bank of India (SBI).

This arrangement also includes a partial credit enhancement (PCE) facility of Rs 400 crore, which will support Rs 2,000 crore bond issuance.

In November 2018, the Reserve Bank of India allowed banks to provide PCE limits to non-banking finance companies (NBFCs) in view of cash crunch faced by such entities.

The PCE mechanism will enhance the rating of the bond issue and allow NBFCs to raise funds at lower cost. This would also bring additional comfort among investor community including pension funds, insurance companies and mutual funds.

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