NTPC Ltd. has entered into a foreign currency loan agreement worth USD 750 million with the International Financial Services Centre (IFSC) Banking Units of Bank of Baroda and HDFC Bank, both based in GIFT City, Gandhinagar. This marks a significant financial milestone for NTPC as it seeks to strengthen its funding for upcoming and ongoing energy projects. The loan has been structured as an unsecured, syndicated External Commercial Borrowing (ECB) facility, comprising a base amount of USD 500 million and an additional greenshoe option of USD 250 million. Bank of Baroda and HDFC Bank have taken the lead as Mandated Lead Arrangers, with Bank of Baroda underwriting the base component and HDFC Bank underwriting the greenshoe portion.
The loan carries a door-to-door tenor of 10 years and an average maturity of 7 years. NTPC plans to use the funds to support capital expenditure for new and existing projects, including capacity expansion programs, flue gas desulphurisation (FGD) initiatives, and investments in renewable and hydro-based energy projects. Additionally, part of the proceeds will be allocated toward refinancing existing ECBs, all in accordance with the guidelines laid out by the Reserve Bank of India.
This transaction is noteworthy not just for its size but also for its strategic importance. It represents the largest foreign currency loan provided by Bank of Baroda to date and marks HDFC Bank’s first foreign currency loan extended to NTPC. The agreement highlights the continued support from domestic financial institutions for NTPC’s long-term vision of delivering reliable and affordable power while advancing its sustainability goals. The company is targeting a total installed capacity exceeding 130 GW by the year 2032, with a focus on reducing its carbon footprint.
The loan signing ceremony took place on June 11, 2025, at GIFT City, Gandhinagar. The agreement was signed by Shri Arvind Babu, General Manager (Finance) from NTPC, along with representatives from both banks—Sh. S.N. Patra, DGM and Head of the IFSC Banking Unit, and Sh. Rajiv Mishra, Chief Manager from Bank of Baroda, as well as Sh. Moti Thakur, Deputy Vice President, and Sh. Ashutosh Kumar, Senior Vice President from HDFC Bank.
