NTPC Planning to Raise Rs 1000 Crore via Bonds

NTPC will raise Rs 1000 crore on July 31 through the issuance of bonds on private placement basis for funding capital expenditure, etc

NTPC Ltd has announced that it will raise Rs 1000 crore on July 31, 2020, through the issuance of bonds on private placement basis for funding capital expenditure, refinancing existing loans, among others.

“NTPC has decided to raise Rs 1,000 crore on July 31, 2020, through a private placement of unsecured non-convertible bonds in the nature of debentures at a coupon of 6.29 percent per annum with a door to door maturity of 10 years, 8 months and 11 days on April 11, 2031,” a regulatory filing said.

The proceeds will be utilised for, inter alia, funding of capital expenditure, refinancing of existing loans and other general corporate purposes. The bonds are proposed to be listed on both NSE and BSE, it said.

Bond Trust Deed for these bonds will be duly executed as per the requirements of and within the period of time prescribed under the Companies Act and rules specified therein, the filing said. And they are being issued under the approval obtained through shareholders’ resolution on August 21, 2019, it added.

In April, NTPC had raised Rs 4,374.10 crore on April 16, 2020, through the issuance of unsecured non-convertible bonds on private placement basis. And the firm had stated, just like with the latest issuance, that the funds raised would be utilised for funding of capital expenditure, refinancing of existing loans and other general corporate purposes.

“NTPC has decided to raise Rs 4,374.10 crore on 16 April 2020 through a private placement of unsecured non-convertible bonds in the nature of debentures at a coupon of 6.55 percent per annum with a door to door maturity after 3 years 1 day,” the filing stated.

More recently, the state-run power giant has issued a tender to acquire 1 GW of operational solar projects, which entails an investment of around Rs 5,000 crore. In a request for proposal (RFP), NTPC invited bids from the promoters or lenders, authorised financial intermediaries of power generation companies, independent power producers (IPPs), or developers for offering operational solar-based assets located in India.

The tender is expected to be finalised by October this year.

The document stated that in line with its long-term corporate plan, NTPC is taking various steps to make its energy portfolio greener by adding significant capacities of renewable energy (RE) sources. By 2032, the company plans to have a minimum of 32 GW capacity through RE sources constituting nearly 25 percent of its overall power generation capacity.