India’s largest power utility, NTPC Ltd, has secured a $750 million syndicated External Commercial Borrowing (ECB) from Bank of Baroda and HDFC Bank, marking a major milestone in infrastructure financing.
Key Details of the Loan Agreement
- Loan Amount: $750 million (Base issue: $500 million, Greenshoe option: $250 million)
- Tenor: 10 years (Average maturity: 7 years)
- Purpose: Funding capacity expansion, renewable energy projects, flue gas desulphurisation (FGD) systems, and refinancing existing ECBs.
Strategic Importance & Future Plans
NTPC aims to diversify its energy portfolio, targeting 130 GW total capacity by 2032, with a strong focus on renewable energy. The loan will support hydro-based projects and clean energy initiatives, aligning with India’s decarbonization goals.
Market Impact & Industry Response
- Bank of Baroda & HDFC Bank’s Role: Both banks acted as Mandated Lead Arrangers, executing the transaction via their IFSC Banking Units in GIFT City, Gandhinagar.
- Global Financial Hub: The deal reinforces GIFT City’s growing stature as a preferred offshore finance platform.
With strong financial backing, NTPC is set to accelerate its clean energy transition, ensuring sustainable power generation for India’s future.
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