NTPC $750 Billion Loan: Details & Impact
- NTPC Ltd.has finalized a $750 million foreign currency loan agreement with the IFSC Banking Units (IBUs) of Bank of Baroda and HDFC Bank, both located in GIFT City,...
- The unsecured, syndicated External Commercial Borrowing (ECB) facility includes a base amount of $500 million and a greenshoe option of $250 million.
- The power producer also plans to refinance existing ECBs, adhering to the Reserve Bank of India’s ECB Guidelines.
NTPC Secures $750 Million Loan for Expansion, Renewable Energy
Updated June 13, 2025
NTPC Ltd.has finalized a $750 million foreign currency loan agreement with the IFSC Banking Units (IBUs) of Bank of Baroda and HDFC Bank, both located in GIFT City, Gandhinagar. The loan will support NTPC’s ongoing and future expansion plans, with a focus on renewable energy projects.
The unsecured, syndicated External Commercial Borrowing (ECB) facility includes a base amount of $500 million and a greenshoe option of $250 million. NTPC intends to use the funds for capital expenditure related to capacity addition programs, flue gas desulphurization (FGD) projects, and renewable energy and hydro-based ventures.
The power producer also plans to refinance existing ECBs, adhering to the Reserve Bank of India’s ECB Guidelines. Bank of Baroda and HDFC Bank served as Mandated Lead arrangers, underwriting $500 million and $250 million, respectively.
The loan has a 10-year tenor,with an average maturity of seven years. NTPC noted that this represents bank of Baroda’s largest foreign currency lending and HDFC Bank’s frist foreign currency loan to NTPC.
What’s next
With this ample financial boost, NTPC is poised to accelerate its renewable energy initiatives and infrastructure growth, contributing to India’s growing focus on sustainable power generation and environmental duty.