New Delhi, November 14: Jindal Power Ltd., the power generation arm of the Jindal Group, has secured an offshore loan of approximately $470 million to finance its power project in Botswana, marking another step in the Indian company’s overseas expansion.

The nine-year loan facility has been provided by three Indian financial institutions: Axis Bank, ICICI Bank and the Export-Import Bank of India (Exim Bank), according to people familiar with the transaction cited in a Bloomberg report. The financing is being syndicated, with additional global institutional lenders expected to participate.

The loan will support Jindal Power’s presence in Botswana, where the company has developed a 700 MW coal-fired power plant. The facility has a nine-year door-to-door repayment period and is priced at approximately 300-325 basis points above the Secured Overnight Financing Rate (SOFR), a benchmark interest rate. The borrowing cost is expected to decline after the project becomes operational.

700 MW Power Project Nears Commissioning

Jindal Power has constructed the 700 MW coal-based power plant in Botswana, which is scheduled for commissioning in December 2026, according to the company’s website.

The project is expected to contribute to electricity availability in Botswana, where mining operations account for a substantial share of industrial power demand. The country’s mining sector, particularly its diamond industry, requires reliable electricity supplies to support operations.

Botswana is also looking to utilise its extensive coal resources, estimated at more than 200 billion tonnes, to strengthen domestic energy security and develop industries, including petroleum fuel production. The country currently relies on imports from neighbouring South Africa and Namibia to meet part of its energy requirements.

Also Read: Andhra Pradesh Pushes for Faster Renewable Energy Project Execution

Jindal Power Expands Overseas Financing

The latest $470 million facility follows an earlier financing round in February 2026, through which Jindal Power raised approximately $500 million to support its international expansion plans.

The successive fund-raising efforts reflect the company’s focus on overseas power generation opportunities, particularly in markets where growing electricity demand is creating requirements for additional generation and supporting infrastructure.

The Botswana project also provides a natural currency hedge for the company. Its revenues are expected to be denominated in, or linked to, foreign currencies, reducing its exposure to exchange-rate fluctuations associated with foreign-currency borrowing.

Indian Companies Tap Overseas Debt Markets

The transaction comes amid continued activity by Indian companies in international debt markets. According to Bloomberg data cited in the report, Indian borrowers raised approximately $24.2 billion through foreign-currency loans during 2026 up to November 13, around 8 per cent lower than the corresponding period a year earlier.

Higher currency-hedging costs have discouraged some companies from accessing overseas borrowing markets. However, Jindal Power’s expected foreign-currency-linked revenues from its Botswana operations provide a measure of protection against exchange-rate movements.

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