Power utility NTPC said Wednesday it has inked a loan deal worth $250 million with State Bank of India and Japan-based Mizuho Corporate Bank for financing its expansion plans.
"NTPC has signed a term-loan agreement for $250 million with the New York branch of State Bank of India and Singapore branch of Mizuho Corporate Bank as lead arrangers and lenders," the company said in a filing to the stock exchange.
"The proceeds of the loan shall be utilised towards capital expenditure for procurement of goods and services for the ongoing and new projects and renovation of stations of the company," NTPC said.
The loan carries a floating rate of interest linked to LIBOR (London interbank offered rate) and has a door-to-door maturity of seven years.
LIBOR is the rate of interest top-end banks charge each other for loans. It is often used by banks as a base for calculating the interest rate they charge on other loans.