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)