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NTPC Secures $750 Million Loan to Boost Renewable and Clean Energy Projects

NTPC has secured a $750 million unsecured syndicated term loan via external commercial borrowing (ECB) to fund its capital expenditure plans, including renewable energy initiatives and flue gas desulphurization projects. The loan includes a base issue of $500 million and a $250 million greenshoe option, with a 10-year door-to-door tenor and an average maturity of seven years.

Proceeds will be used for capacity expansions, both for existing projects and new ventures. This includes clean energy transition goals, such as solar, wind, and emission control technologies. The loan was facilitated through GIFT City’s IFSC banking units, with Bank of Baroda acting as the mandated lead arranger and underwriter, while HDFC Bank handled the greenshoe portion.

NTPC aims to raise its installed capacity from 80 GW to over 130 GW and achieve 60 GW of renewable energy by 2032. Its green energy subsidiary, NTPC REL, already operates 703 MW and plans to add around 15 GW by FY 2025, with 10 GW under various tender stages.

This fundraising comes amid a global slowdown in corporate funding for solar and energy storage, which saw a 41% year-on-year drop in Q1 2025. NTPC’s successful deal underscores its strong credit and strategic role in India’s energy transition.