IRFC Signs ₹5,000 Crore Loan Agreement with NTPC Renewable Energy

Indian Railway Finance Corporation Ltd (IRFC), on March 25, 2025, signed a rupee term loan (RTL) agreement with NTPC Renewable Energy Limited (NTPC REL) for ₹5,000 crore. NTPC REL is a wholly owned subsidiary of NTPC Green Energy Ltd (NTPC GEL). The agreement was disclosed in a regulatory filing by IR FC and falls under Regulation 30 and 51 of the SEBI (LODR) Regulations, 2015.

Purpose of the Loan

According to the disclosure, the funds will be used to meet part of the capital expenditure for NTPC REL’s ongoing and new capacity expansion projects. The amount will also be allocated for refinancing existing loans, as approved by NTPC REL’s board.

Terms of the Loan

The rupee term loan is unsecured. However, NTPC REL has provided a negative lien with specific exceptions, meaning that certain assets cannot be pledged elsewhere. There is no equity holding between IRFC and NTPC REL, and no special rights or director appointments are involved. The loan amount has not been disbursed yet.

Financials 

In the third quarter, IRFC reported a 2% increase in net profit to ₹1,630 crore compared to the same period last year. Revenue for the quarter was ₹6,763 crore, nearly flat compared to ₹6,737 crore in the corresponding quarter of the previous year.

Share Price Performance

As of 1:24 PM on March 26, Indian Railway Finance Corp share price was trading at ₹129.60, up 0.15% for the day, showing a 7.68% gain over the past month but a 17.37% decline over the past six months, while NTPC Green Energy share price was trading at ₹99.66 at 1:25 PM, down 0.59% for the day, with a 7.13% rise over the past month and an 18.08% drop over the past six months.

Conclusion

The ₹5,000 crore agreement between IRFC and NTPC REL supports renewable energy expansion and debt restructuring.

The loan agreement was signed after NTPC Green Energy received approval from Rajasthan Renewable Energy Corporation Ltd to begin work on the final phase of its 320 MW Bhainsara Solar PV Project in Jaisalmer.

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