NTPC Secures $750 Million Unsecured Syndicated Loan from Bank of Baroda and HDFC Bank

NTPC, India's largest power utility, has announced the signing of a foreign currency loan agreement worth $750 million with the IFSC Banking Units of Bank of Baroda and HDFC Bank in GIFT City, Gandhinagar. The loan facility, which carries a door-to-door tenor of 10 years, will be used to fund capital expenditure for various capacity expansion projects, including flue gas desulphurisation systems, renewable energy, and hydro-based projects. This transaction marks a significant milestone for NTPC, which is targeting a diversified energy portfolio exceeding 130 GW by 2032, with a strong focus on reducing its carbon footprint.

Key Takeaways:

• NTPC has secured a $750 million unsecured syndicated External Commercial Borrowing (ECB) facility from Bank of Baroda and HDFC Bank's IFSC Banking Units in GIFT City, Gandhinagar.
• The loan facility comprises a base amount of $500 million and a greenshoe option of $250 million, with Bank of Baroda underwriting $500 million and HDFC Bank underwriting $250 million.
• The facility carries a door-to-door tenor of 10 years, with an average maturity of 7 years, and will be used to fund capital expenditure for various capacity expansion projects.
• Proceeds from the loan will also be used to refinance existing ECBs in accordance with the Reserve Bank of India's ECB guidelines.
• NTPC is targeting a diversified energy portfolio exceeding 130 GW by 2032, with a strong focus on reducing its carbon footprint.
• This transaction marks the largest foreign currency lending by Bank of Baroda and the first-ever foreign currency loan extended by HDFC Bank to NTPC.

Statistics:

• $750 million: Amount of the external commercial borrowing facility secured by NTPC.
• $500 million: Base amount of the loan facility.
• $250 million: Greenshoe option of the loan facility.
• 10 years: Door-to-door tenor of the loan facility.
• 7 years: Average maturity of the loan facility.
• 2032: Target year for NTPC's diversified energy portfolio exceeding 130 GW.
• 130 GW: Target energy portfolio for NTPC by 2032.

Sources:

• Statement by NTPC (no publication date)
• Copyright 2025 IE Online Media Services Pvt. Ltd., distributed by Contify.com