Jindal Power Secures $470 Million Loan for Botswana Plant

Jindal Power Ltd, the electricity arm of India's Jindal Group, secured an offshore loan of approximately $470 million to finance a 700-megawatt coal-fired power plant in Botswana. The nine-year loan was provided by a consortium consisting of Axis Bank, ICICI Bank, and the Export-Import Bank of India.

The company is currently syndicating the loan to global institutional lenders. The power plant is scheduled for commissioning next month. Borrowing costs are established at 300 to 325 basis points above the Secured Overnight Financing Rate, though these costs are expected to decrease once the plant begins commercial operations.

To manage exchange-rate risks, Jindal Power expects project revenues to be denominated in or linked to foreign currencies. This financing follows a $500 million round completed in February intended for the group's overseas expansion.