Jindal Power Ltd has reportedly secured an offshore loan of approximately $470 million from three Indian banks to finance its coal-based power project in Botswana, strengthening the company's presence in Africa's energy sector.
As per a report by Bloomberg, Axis Bank, ICICI Bank and the Export-Import Bank of India have provided the financing facility, which carries a nine-year tenure.
The loan is being syndicated, with international institutional lenders expected to participate.
The development highlights growing overseas investment by Indian energy companies seeking opportunities in markets with increasing electricity demand.
The $470 million facility will support Jindal Power's 700-megawatt (MW) coal-fired power plant in Botswana, which is scheduled for commissioning in December 2026, according to the company's website.
The project forms part of Jindal Power's international expansion strategy.
The company previously raised approximately $500 million in February to support its overseas growth plans.
According to the report, the latest borrowing carries an interest margin of 300 to 325 basis points above the Secured Overnight Financing Rate (SOFR).
Financing costs are expected to decline after the power plant becomes operational.
Botswana's mining industry requires substantial electricity supplies, creating opportunities for investment in power generation infrastructure.
The country also possesses estimated coal reserves exceeding 200 billion tonnes and is exploring ways to reduce its dependence on imported petroleum fuels.
Meanwhile, Indian companies have raised approximately $24.2 billion through foreign-currency loans this year, according to Bloomberg data.
The figure represents an 8% decline from the corresponding period last year, reflecting concerns over elevated currency hedging costs.
Jindal Power's Botswana investment could face comparatively lower exchange-rate exposure because project revenues are expected to be denominated in, or linked to, foreign currencies.
This natural hedge could help the company manage currency fluctuations while financing its overseas operations.
