State-owned power generator NTPC Ltd today announced it has signed a syndicated loan in Japanese Yen equivalent to $750 million. The proceeds will be channelized to fund projects for cutting down emission levels from power plants and hydro projects.
“This is the largest-ever syndicated JPY loan raised by any Asian corporate from offshore Samurai loan market. It is also the highest-ever single foreign currency loan raised by NTPC,” the company said in a statement.
The loan has been raised under the automatic route of Reserve Bank of India’s External Commercial Borrowing regulations and has a door-to-door maturity of 11 years under two tranches.
The company said the facility is fully underwritten by State Bank of India, Tokyo; Sumitomo Mitsui Banking Corporation, Singapore; and Bank of India, Tokyo as on 20 January 2020 and will be shortly launched by the banks for general syndication.
The loan proceeds will be utilized for funding capex for installation of Flue Gas Desulphurization (FGD) system, hydro projects and other projects using ultra supercritical technology with low carbon emission.
FGD systems substantially reduce Sulphur Dioxide emissions in the flue gases of thermal power plants and is a step towards sustainable operations and cleaner environment.