Power Finance Corporation Ltd has informed BSE that the Company has signed an MoU with Ex-Im Bank of U.S. on May 14, 2008.

Ex-Im Bank of the United States has recently approved an India Infrastructure Facility that will support U.S. exports to Indian projects in sectors such as power and renewable energy generation etc. PVC is one of the financial institutions approved under this India Infrastructure Facility with a proposed allocation of USD 800 Million. A Memorandum of Understanding in this regard has been signed today by Mr. James H Lambright, Chairman Ex-Im Bank of U.S. and Mr. Satnam Singh, Director (Finance & Financial Operations) Power Finance Corporation.

The facility will be used by the borrowers of PFC for project related imports from U.S. during the next two years. The special delegated line of credit under this facility will be subject to the approval of Reserve Bank of India and it will not require any guarantee from the Government of India.