NTPC Secures $750 Million ECB Loan to Accelerate Clean Energy and Expansion Plans – EQ
In Short : NTPC has raised $750 million through an unsecured External Commercial Borrowing (ECB) loan to fund capacity expansion and green energy projects. Arranged by Bank of Baroda and HDFC Bank via GIFT City, the loan includes a $500 million base and a $250 million greenshoe option. Proceeds will support renewable energy, emission control systems, and refinancing existing debt.
In Detail : NTPC has successfully secured a $750 million unsecured External Commercial Borrowing (ECB) loan to support its ongoing capacity expansion and green energy initiatives. This strategic financial move underlines NTPC’s focus on sustainable growth and cleaner energy solutions.
The loan comprises a base tranche of $500 million, with an additional $250 million available through a greenshoe option. This flexible structure allows the company to expand the funding based on future requirements or investor interest.
The borrowing has a tenure of 10 years with an average maturity period of seven years, offering NTPC a long-term, stable financing arrangement. This will help the company maintain financial strength while executing its ambitious energy transition plans.
The ECB loan was arranged through the International Banking Units (IBUs) of Bank of Baroda and HDFC Bank, located in Gujarat’s GIFT City. The use of GIFT City as the financial hub for the transaction emphasizes the growing importance of the special economic zone for global capital access.
Funds raised will be utilized for several key areas, including renewable energy projects, installation of flue gas desulphurisation systems to curb emissions, and refinancing of existing debt to improve financial efficiency. These initiatives align with India’s broader climate goals and NTPC’s commitment to clean energy.
With this loan, NTPC strengthens its financial position and reinforces its role as a leading force in India’s transition to sustainable and environmentally responsible power generation. The move also reflects strong investor confidence in NTPC’s long-term vision and execution capability.
