JSW Neo Energy Seeks $675 Million Loan to Support Strategic Acquisition of O2 Power

JSW Neo Energy Ltd, a subsidiary of JSW Energy Ltd, is in the process of securing a $675 million loan to fund its acquisition of O2 Power, a renewable energy platform jointly owned by Sweden’s EQT AB and Singapore’s Temasek Holdings, according to media reports.

Financiers of $675 Million Loan

The financing is being led by Deutsche Bank AG and Mitsubishi UFJ Financial Group, who are acting as mandated lead arrangers and bookrunners for the five-year syndicated loan. Investor roadshows are being held across Dubai, Singapore, and Taipei as the deal is marketed to a broader pool of lenders.

The proposed loan is expected to carry an interest margin of 170 basis points over the Secured Overnight Financing Rate (SOFR).

Acquisition of O2 Power

JSW Neo’s parent company, JSW Energy, announced its $1.5 billion agreement to acquire O2 Power in December 2024. O2 Power boasts a robust portfolio with a 4.7-gigawatt renewable capacity, and the acquisition marks a strategic step toward JSW's ambition of reaching 20 gigawatts of capacity by 2030.

This transaction also aligns with India’s broader green energy push, with Prime Minister Narendra Modi aiming to more than double the country’s clean energy capacity by the end of the decade.

JSW Neo's loan pursuit comes amid a surge in foreign currency borrowing by Indian corporates. According to Bloomberg data, year-to-date foreign loan volumes have reached $10.7 billion, a 10% increase compared to the same period last year. Notably, Reliance Industries recently secured a $2.98 billion-equivalent loan, while Shapoorji Pallonji Group closed a landmark $3.4 billion private credit deal, the largest of its kind in India.

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JSW FY25 Operational Highlights

In FY 2025, JSW marked a year of significant strategic and operational achievements. The company earned a sector-leading ‘A’ ESG rating from MSCI and was certified as a Great Place to Work for the third consecutive year, also ranking among the Top 25 Best Workplaces in the Manufacturing sector. Demonstrating leadership in renewable energy, JSW commissioned 1.3 GW of organic wind capacity, accounting for nearly one-third of India’s total wind additions for the year.

The company also strengthened its baseload thermal portfolio by acquiring the 3.6 GW KSK Mahanadi plant via the NCLT route, fully commissioning the 700 MW Utkal project, and signing a PPA with WBSEDCL for a greenfield 1.6 GW supercritical plant. In a major renewable push, JSW completed the acquisition of O2 Power’s 4.7 GW platform in April 2025, which includes 1.34 GW of operational capacity. To fund its accelerated growth plans, the company raised ₹5,000 crore through a Qualified Institutional Placement, attracting support from marquee investors.

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