NTPC secures $750 million ECB loan to fund green and capacity expansion goals
New Delhi: India’s largest power producer, NTPC Limited, has raised $750 million through an unsecured External Commercial Borrowing (ECB) syndicated term loan to fund its capital expenditure, furthering its strategic goals in renewable energy and capacity expansion.
The transaction comprises a base issue of $500 million with a greenshoe option of $250 million, carrying a door-to-door tenor of 10 years and an average maturity of 7 years.
The funding was routed through the IFSC Banking Units (IBUs) of Bank of Baroda and HDFC Bank at GIFT City, Gandhinagar — a rising hub for international financial services.
Bank of Baroda acted as the Mandated Lead Arranger and Underwriter for the $500 million portion, while HDFC Bank served as the Mandated Lead Arranger and Bookrunner for the greenshoe tranche.
The funds will be used to finance ongoing and new capital projects, including flue gas desulphurisation units, hydro and other renewable energy projects, and for refinancing existing ECBs in line with RBI's ECB guidelines.
“This is a critical step in our journey towards building a balanced, future-ready power ecosystem,” said Jaikumar Srinivasan, Director (Finance), NTPC, adding that the company is targeting 60 GW of renewable capacity by 2032 while increasing its total installed capacity from the current 80 GW to over 130 GW.
Bank of Baroda’s Executive Director Lalit Tyagi described the deal as a testament to the bank’s strength in cross-border infrastructure financing and reaffirmed its role in backing India’s energy transition goals.
Ashutosh Kumar, Senior Vice President & Regional Head – PSU at HDFC Bank, noted that the transaction strengthens GIFT City’s position as a global financial hub, enabling high-value strategic funding and ecosystem development.
NTPC’s move comes as part of its broader push toward energy diversification, aligning with India’s decarbonisation objectives. The ECB route offers the company cost-effective offshore financing while supporting cleaner energy initiatives.
GIFT City continues to gain ground as a preferred offshore finance platform, with Bank of Baroda’s IBU—its third-largest overseas branch—reporting total business exceeding $10 billion as of March 2025.
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