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NTPC Green Energy to Raise INR 2,500 Crore via 10-Year NCDs to Support Renewable Energy Expansion

NTPC Green Energy Limited (NGEL) has announced plans to raise INR 2,500 crore through the private placement of unsecured non-convertible debentures (NCDs), strengthening its financial resources to support ongoing renewable energy investments and capital expenditure. The debt issue is scheduled for July 9, 2026, and represents the first tranche under the company's board-approved fundraising programme.

According to a regulatory filing, the NCDs will carry a 10-year tenure with a fixed coupon rate of 7.27 percent per annum and will mature on July 9, 2036. The issuance follows approval granted by the company's Board of Directors on May 22, 2026, as part of a broader plan to mobilise long-term capital for expanding its clean energy portfolio.

The proceeds from the debenture issue will primarily be utilised to finance capital expenditure on renewable energy projects, including refinancing or recouping investments already made in existing assets. The funds may also be extended as inter-corporate loans to NGEL's subsidiaries and joint ventures to support the development of new renewable energy projects, while a portion will be allocated towards general corporate purposes.

The proposed NCDs are expected to be listed on the National Stock Exchange (NSE) after completion of the required regulatory and listing formalities, providing investors with an additional fixed-income instrument backed by one of India's leading renewable energy companies.

The fundraising comes as NTPC Green Energy continues to expand its renewable energy portfolio at a rapid pace. The company recently crossed the milestone of 10 GW of operational renewable energy capacity, reaching 10.62 GW as of June 2026. Its portfolio includes large-scale solar, wind, floating solar, and hybrid renewable energy projects being developed across multiple states, supporting India's transition towards a cleaner electricity mix.

The expansion aligns with the broader growth strategy of NTPC Limited, which has significantly accelerated investments in renewable energy over the past few years. In July 2025, the Cabinet Committee on Economic Affairs (CCEA) enhanced NTPC's investment approval limit for its renewable energy subsidiaries and joint ventures from INR 7,500 crore to INR 20,000 crore. The decision was aimed at enabling NTPC Green Energy and its affiliated entities to accelerate project development and contribute towards the NTPC Group's ambitious target of establishing 60 GW of renewable energy capacity by 2032.

Long-term debt instruments such as NCDs have become an increasingly important source of financing for renewable energy developers, offering access to stable capital while matching the long operational life of clean energy assets. Such financing supports the construction of utility-scale solar and wind projects, battery energy storage systems, and associated transmission infrastructure, all of which require significant upfront investment.

India's renewable energy sector continues to witness strong capital inflows as the country works towards achieving 500 GW of non-fossil fuel electricity capacity by 2030. Developers are increasingly leveraging a mix of equity, green bonds, bank financing, and corporate debt issuances to fund large-scale clean energy projects and strengthen grid infrastructure.

With the latest INR 2,500 crore fundraising, NTPC Green Energy is expected to further enhance its financial flexibility, accelerate project execution, and reinforce its position as one of India's leading renewable energy developers while supporting the country's long-term energy transition and decarbonisation goals.