Jindal Power is raising $470 million through an offshore loan to fund a power project in Botswana. The financing will support the company's overseas expansion. It also highlights the growing presence of Indian energy companies in international markets.

A consortium of three Indian lenders has provided the nine-year loan facility. The lenders include Axis Bank Ltd., ICICI Bank Ltd., and Export-Import Bank of India (Exim Bank). The facility is being syndicated, with several global institutional lenders expected to join, according to people familiar with the matter.

The people requested anonymity because the financing details are private.

Key Highlights:

• Jindal Power has secured an offshore loan of approximately $470 million.
• Axis Bank, ICICI Bank, and Exim Bank are the initial lenders.
• The nine-year facility is being syndicated to bring in global institutional lenders.

Indian Banks Back Jindal Power's Botswana Expansion

The latest financing marks another step in Jindal Power's international growth plans. The company is seeking to strengthen its presence in Botswana through investments in the power sector.

The loan comes as Indian energy companies increasingly explore overseas opportunities. Rising electricity demand in several international markets is creating opportunities for investment in power generation and transmission infrastructure.

For Indian companies, these markets offer opportunities to expand operations and participate in the development of energy infrastructure.

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700 MW Power Plant Nears Commissioning

The latest loan is linked to a 700-megawatt coal-fired power plant that Jindal Power has built in Botswana. The facility is scheduled for commissioning in December 2026, according to the company's website, as reported by Bloomberg.

The loan carries an interest margin of around 300 to 325 basis points above the Secured Overnight Financing Rate (SOFR). The borrowing cost is expected to decline after the power plant begins operations, according to people familiar with the transaction.

Jindal Power also raised approximately $500 million in February through an earlier financing round to support its overseas expansion. Revenue from the Botswana project is expected to be denominated in, or linked to, foreign currencies. This could provide a natural hedge against exchange-rate fluctuations.

The development comes as Indian companies continue to explore international markets for energy infrastructure investments. However, higher currency hedging costs have affected overseas borrowing activity among Indian businesses.