Tata Power explores $450 million offshore loan backed by subsidiary shareholdings

Tata Power Plans To Raise $450 Million Overseas Loan For Business Operations

Tata Power is exploring options to raise at least $450 million through overseas borrowing to support its business operations, according to people familiar with the matter.The power utility is in discussions with banks for a five-year loan under the external commercial borrowing (ECB) route, Bloomberg reported. The proposed borrowing is expected to be backed by shares held by Tata Power in its subsidiaries in Indonesia and Singapore.The discussions are at an early stage, and key details, including interest rates and other terms of the facility, have not yet been finalised. The fundraising plan comes as Indian infrastructure and energy companies increasingly turn to overseas debt markets amid improving lender sentiment and relatively favourable global borrowing conditions. IREDA Secures ¥28 Billion ECB Facility From SMBC To Strengthen Funding BaseCompanies are seeking foreign-currency loans to diversify funding sources and access longer-term capital.Adani Green Energy Ltd., another major player in India’s renewable energy sector, is also reportedly looking to raise up to $1 billion through an offshore loan, highlighting renewed interest in overseas financing among large infrastructure firms.Tata Power is already among the top five large Indian borrowers accessing foreign-currency loans, according to data compiled by Bloomberg. External commercial borrowings allow eligible Indian companies to raise funds from international lenders, often at competitive rates and with longer repayment periods, subject to Reserve Bank of India regulations.The company is expected to use the additional funds to strengthen its financial position as it continues expanding investments across renewable energy, power transmission and distribution businesses.Rating agency CareEdge had noted last month that Tata Power may need to refinance portions of its debt exposure due to significant repayment obligations over the next three years, alongside its ongoing capital expenditure plans. The company has been investing heavily in clean energy capacity, grid infrastructure and other power sector initiatives as India’s energy transition accelerates. Raising funds through overseas markets would help Tata Power maintain liquidity while reducing dependence on domestic lending channels.If finalised, the proposed overseas borrowing would add another source of capital for Tata Power as it pursues long-term growth opportunities across conventional and renewable energy segments. The move also reflects a broader trend among Indian companies seeking global financing amid improving access to international debt markets.

2 hours ago

Tata Power Mulls $450 Million Loan Backed By Offshore Units

External commercial borrowings allow eligible Indian companies to raise large funds from overseas lenders often at competitive borrowing costs and longer repayment terms, subject to Reserve Bank of India regulations.

9 hours ago

Tata Power Mulls $450 Million Loan Backed by Offshore Units

India’s Tata Power Co. is in talks with banks to raise at least $450 million overseas for regular business operations, according to people familiar with the matter.

11 hours ago