IRFC signs ₹5,000-crore loan agreement with NTPC Renewable Energy
IRFC’s stock showed mixed performance on April 1, with shares trading at ₹123.56 on NSE, down 0.69 per cent at 12.05 pm, despite Aum Capital reporting a 1.07 per cent price increase alongside a minimal decrease in open interest of 0.02 per cent.
Indian Railway Finance Corporation (IRFC) has entered into a significant loan agreement with NTPC Renewable Energy Limited (NTPC REL) to provide a Rupee Term Loan of ₹5,000 crore, according to a regulatory filing dated March 25, 2025.
The unsecured loan will help NTPC REL, a wholly-owned subsidiary of NTPC Green Energy Limited, meet capital expenditure for ongoing and new capacity addition projects, including refinancing of existing loans. The agreement follows NTPC REL’s board approval and IRFC’s earlier intimation to stock exchanges on February 22.
The loan terms specify that while the facility is unsecured, it includes a negative lien provision with certain exceptions. As of the announcement, the loan amount had not yet been disbursed.
This transaction represents a significant financing arrangement in India’s renewable energy sector, with IRFC expanding its lending portfolio beyond its traditional railway financing focus. NTPC REL, as part of the NTPC Group, continues to secure funding for its expanding renewable energy projects portfolio.
