SECI Seeks ₹1,000 Crore Foreign Loan To Cut Borrowing Costs And Strengthen Renewable Energy Financing

SECI has taken a significant step toward diversifying its funding sources and reducing borrowing costs by inviting international lenders to participate in a new financing initiative. The state-owned renewable energy company has issued an Expression of Interest (EOI) to arrange External Commercial Borrowings (ECBs) or a Foreign Currency Term Loan (FCTL) facility worth the equivalent of INR 1,000 Crore.

The EOI, released on June 12, 2026, is aimed at international banks, financial institutions, and multilateral agencies capable of providing foreign currency financing. SECI, a Navratna Central Public Sector Enterprise operating under the Ministry of New and Renewable Energy (MNRE), plays a key role in implementing India’s renewable energy programs and projects.

The company enters the market with a strong financial position. It holds AAA (Stable) credit ratings from both ICRA and CARE Ratings, reflecting its sound financial health and low credit risk. SECI has also reported steady financial growth in recent years. Its operational revenue increased from INR 13,035 Crore in FY 2023-24 to INR 18,447 Crore in FY 2025-26. During the same period, its net profit after tax rose from INR 436 Crore to INR 579 Crore, highlighting consistent business expansion and profitability.

According to the EOI, the proposed borrowing facility will have a tenure of five years with a bullet repayment structure, meaning the principal amount will be repaid at maturity. Lenders may offer funding in US dollars or other eligible foreign currencies. The facility will also allow either single or multiple drawdowns based on SECI’s requirements.

The funds raised through this borrowing program will be used for a range of financial and operational purposes. These include repayment of existing domestic debt, refinancing of loans, meeting working capital requirements, supporting general corporate activities, and financing both past and future capital expenditure projects.

SECI has indicated a preference for an unsecured loan structure. However, if security is required, the company has limited the maximum security cover to 1.10 times the amount drawn. Lenders are also free to propose either fixed-rate or floating-rate interest structures.

A key feature of the proposal is the management of foreign exchange risk. For loans denominated in US dollars, the selected lender will be required to hedge currency exposure in line with the Reserve Bank of India’s USD/INR Swap Facility guidelines for public sector undertakings for drawdowns made up to December 31, 2026.

The company has also specified strict commercial conditions, including no tax gross-up provisions, commitment fees, or prepayment charges. Proposals will be evaluated primarily on the basis of the lowest effective all-in INR borrowing cost, including interest rates, credit spreads, hedging expenses, and other applicable charges. Interested lenders have been given 15 days from the date of issuance to submit their indicative proposals to SECI’s finance office in New Delhi.