NTPC secured $750 million Loan from Bank of Baroda and HDFC Bank

NTPC has secured $750 million loan from Bank of Baroda and HDFC Bank. $500 million will be provided by Bank of Baroda and $250 million will be provided by HDFC Bank.

NTPC has signed a foreign currency loan agreement worth $750 million with the IFSC Banking Units (IBUs) of Bank of Baroda and HDFC Bank, located in GIFT City, Gandhinagar. This unsecured, syndicated External Commercial Borrowing (ECB) facility consists of a base amount of $500 million and a greenshoe option of $250 million.

Bank of Baroda and HDFC Bank acted as Mandated Lead Arrangers, underwriting $500 million (base amount by Bank of Baroda) and $250 million (greenshoe portion by HDFC Bank), respectively,” the company said in a statement.

The loan agreement was signed on Wednesday in GIFT City, Gandhinagar, Gujarat, by Arvind Babu, General Manager (Finance), NTPC; SN Patra, DGM & Head – IFSC Banking Unit, and Rajiv Mishra, Chief Manager, Bank of Baroda; along with Moti Thakur, Deputy Vice President, and Ashutosh Kumar, Senior Vice President, HDFC Bank.

The facility carries a door-to-door tenor of 10 years, with an average maturity of 7 years. The loan will be used by NTPC to fund capital expenditure for its ongoing and upcoming capacity expansion projects, including flue gas desulphurisation (FGD) systems, renewable energy and hydro-based projects, as well as to refinance existing ECBs.

This will be the largest foreign currency lending by Bank of Baroda and the first-ever foreign currency loan extended by HDFC Bank to NTPC. NTPC is targeting a diversified energy portfolio exceeding 130 GW by 2032, with a strong focus on reducing its carbon footprint.

NTPC Limited, formerly known as National Thermal Power Corporation, is an Indian central Public Sector Undertaking (PSU) under the ownership of the Ministry of Power and the Government of India. It is engaged in the generation of electricity and other activities. The headquarters of the PSU are situated at New Delhi. NTPC’s core function is the generation and distribution of electricity to State Electricity Boards in India. It also undertakes consultancy and turnkey project contracts that involve engineering, project management, construction management, and operation and management of power plants. It is the largest power company in India.