Jindal Power, a division of the Jindal Group, has obtained offshore financing of about $470m from a consortium of three Indian lenders to support its power project in Botswana, according to individuals familiar with the transaction reported Bloomberg.
Axis Bank, ICICI Bank, and Export-Import Bank of India are providing the nine-year loan facility, with further syndication involving global institutional lenders expected.
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The loan proceeds will contribute to the Jindal Mmamabula Energy Project (JMEP), a 700MW coal-fired power station developed by Jindal Power in Botswana.
The plant is targeted for commissioning in December 2026 and is intended to address growing electricity needs in Botswana and neighbouring countries.
The loan is priced at roughly 300 to 325 basis points over the benchmark Secured Overnight Financing Rate, with borrowing costs projected to decline after the power plant begins operations, sources added.
Jindal Power raised approximately $500m in February to support its international expansion, highlighting growing interest among Indian energy companies in overseas growth.
Botswana’s mining sector is a major consumer of electricity, and the country aims to harness its coal reserves, estimated at more than 200 billion tonnes, to reduce its reliance on energy imports from South Africa and Namibia, the publication said.
JMEP is developed both to supply Botswana’s domestic demand and to export surplus electricity to regional markets.
Jindal Energy Botswana is planning to expand the project’s capacity to 1.2GW and, over the long term, incorporate solar generation.
Representatives from Jindal Power, Axis Bank, ICICI Bank, and Export-Import Bank of India declined to comment on the matter.
In February 2024, Jindal Power submitted a bid valued at Rs140bn ($1.69bn) for the KSK Mahanadi coal power plant in India.
The 1.8GW facility, built by KSK Energy Ventures, has been undergoing insolvency proceedings since October 2019.
