NTPC has raised an unsecured $750 million via an external commercial borrowing syndicated term loan facility. This loan will include a base issue of $500 million and a greenshoe option of $250 million, with a door-to-door tenor of 10 years and an average maturity of seven years.

The proceeds will be utilized towards financing NTPC’s capital expenditure for existing or new capacity addition programs, including flue gas desulphurization projects, renewable energy projects, and refinancing of existing external commercial borrowing for capital expenditure purposes.

Bank of Baroda acted as the transaction’s mandated lead arranger and underwriter of the transaction. HDFC Bank was the mandated lead arranger and bookrunner for the greenshoe portion of the transaction. The deal was executed through the IFSC banking units of Bank of Baroda and HDFC Bank in GIFT City, Gandhinagar.

Jaikumar Srinivasan, Director (Finance) NTPC, stated that the public sector undertaking is expanding its energy portfolio to achieve 60 GW of renewable capacity by 2032 and increase its total installed capacity from 80 GW to over 130 GW.

NTPC’s renewable energy arm, NTPC REL, has an installed capacity of 703 MW, comprising 653 MW of solar power and 50 MW of wind power. It had estimated a capacity addition of around 15 GW by the end of the financial year 2025. About 10 GW of renewable energy capacity is under various stages of tendering.

This financing comes at a time when corporate funding in the solar and energy storage sectors is struggling globally. Solar companies secured $4.8 billion in corporate funding in 39 deals in the first quarter (Q1) of 2025, a 41% year-over-year decrease from $8.2 billion raised in 42 deals, according to Mercom Capital Group’s Q1 2025 Solar Funding and M&A Report.

NTPC Green Energy’s ₹100 billion (~$1.19 billion) initial public offering was oversubscribed 2.42 times at the end of the bidding window on November 22, 2024.