Jindal lines up $1 billion loan in boost for slow market

The first $500 million part of the Jindal fundraising was priced at around 300 basis points over the secured overnight financing rate or SOFR, the people said. Bloomberg

• Jindal Power seeks up to $1B in offshore loans for expansion
• First $500 million loan signed with Axis Bank and ICICI Bank
• Jindal's deal may boost India's sluggish dollar loan market

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The power unit of one of India’s largest conglomerates Jindal Group is seeking to raise as much as $1 billion from offshore loans to fund overseas expansion, according to people familiar with the matter, providing relief for India’s dollar loan market that’s been stymied by trade swings.

As part of the financing, Jindal Power Ltd. has already signed an eight-year loan for about $500 million with lenders including India’s Axis Bank Ltd. and ICICI Bank Ltd., the people said, asking not to be identified as the details are private. The remaining $500 million is expected to be raised in the coming months, they said.

Jindal Power, Axis Bank and ICICI Bank didn’t immediately reply to Bloomberg requests seeking comments.

The deal by Jindal, which is pursuing a major power project in Botswana, will boost loans taken out by Indian companies in the US currency after volumes slumped by almost half so far in 2026 from the year-earlier period, Bloomberg-compiled data show. Indian companies have continued to expand their global footprint, but there are also signs that the increased trade protectionism ushered in by US President Donald Trump is making business leaders more cautious.

The first $500 million part of the Jindal fundraising was priced at around 300 basis points over the secured overnight financing rate or SOFR, the people said.

“70% of Indian firms say cross-border trade has become harder to navigate,” tax compliance software company Avalara Inc. said in a statement this week, citing a company survey. “Cross-border operations have become more complex in the past year, indicating that expansion continues but no longer at the pace seen earlier.”

While Indian borrowers raised about $23 billion in dollar syndicated loans in 2025, up 23% from the previous year, volumes have dropped 45% to $925 million year-to-date, according to data compiled by Bloomberg.