Loan agreement between NTPC & JBIC

Loan agreement between NTPC & JBIC

Question : NTPC has recently entered into foreign currency loan agreement with the JBIC.Which of the following statement is incorrect regarding this agreement ?
(a) loan amount is approximately USD 482 million
(b) JBIC stands for — Jordan Bank for International Co-operation
(c) JBIC provided 60% of the facility amount and rest facility amount is provided by commercial banks under JBIC guarantee
(d) This facility is extended under GREEN initiative
Answer (b)
Related facts

  • NTPC has recently(October 2020) entered into foreign currency loan agreement with the JBIC.

GREEN initiative

  • GREEN stands for — Global action for Reconciling Economic growth and Environment preservation.
  • It is an JBIC’s initiative.
  • USD 482 million facility is extended under this initiative.
  • The loan proceeds shall be utilized by the Company for funding its capex for Flue Gas Desulphurization (FGD) & Renewable Energy projects.
  • This is the first loan for NTPC under JBIC’s GREEN operations in India.

JBIC

  • Japan Bank for International Co-operation is a Japanese Government policy-based financial institution.

By — Pankaj Pandey.

Link:
https://www.ntpc.co.in/en/media/press-releases/details/ntpc-ties-jpy-50-billion-funding-jbic