Fused entity to have enough cash to loan private players: PFC on REC merger

Power Finance Corporation (PFC) on Friday said the combined entity after merger with REC will have “enough cushion” to provide loans to private sector players.

Amid reports that the merger could impact the combined entity’s lending capacity, PFC also said it did not expect compliance issues with respect to borrowing.

In March 2019, PFC completed acquisition of 52.63 per cent stake of the government in REC along with the management control at a cash purchase consideration of Rs 14,500 crore.