Home / Business and Economy / Jindal Power Eyes $1 Billion Offshore Loans for Global Reach
Jindal Power Eyes $1 Billion Offshore Loans for Global Reach
24 Feb
Summary
- Jindal Power aims to secure $1 billion in offshore loans.
- A $500 million loan has already been finalized with Indian banks.
- The funding supports international expansion amidst trade complexities.
Jindal Power, a unit of the Jindal Group, is set to raise as much as $1 billion through offshore loans to finance its global expansion initiatives. This significant fundraising effort provides a welcome influx of capital for India's dollar loan market, which has been impacted by recent trade fluctuations.
The company has already finalized an eight-year loan valued at approximately $500 million, with notable Indian financial institutions such as Axis Bank and ICICI Bank participating as lenders. The remaining $500 million is anticipated to be raised in the coming months, signaling continued growth and international ambitions for Jindal Power.
This financial move by Jindal Power is particularly significant as it aims to support a large power project in Botswana. The deal is expected to invigorate dollar-denominated lending by Indian companies, following a substantial decline in volumes experienced earlier in 2026. Despite ongoing global expansion, Indian businesses are increasingly cautious due to rising trade protectionism.
The initial $500 million tranche of the Jindal financing was priced at around 300 basis points above the Secured Overnight Financing Rate (SOFR). This development occurs in a context where 70% of Indian firms report increased difficulty navigating cross-border trade, according to a recent survey by Avalara Inc., indicating a more complex but ongoing expansion landscape for businesses.
