New Delhi: State-owned power giant NTPC Limited will seek shareholders' approval to raise up to Rs 12,000 crore by issuing bonds on a private placement basis.

The company will seek shareholders' nod in its annual general meeting on August 30, 2023.

The company has listed a special resolution in its annual general meeting to raise funds up to Rs 12,000 crore through the issue of bonds/debentures on a private placement basis in the domestic market for capex, working capital and general corporate purposes, according to a notice for the AGM.

As the company is under capacity expansion mode, a major portion of capital expenditure requirement has to be funded by debt, it said.

The company borrows in the form of NCDs, rupee-term loans from banks and financial institutions, foreign currency borrowings, foreign currency bonds etc.

NCDs are raised under a public issue route or through a private placement basis.

The company also needs to borrow to meet its working capital requirement and other general corporate purpose, which is partly proposed to be met through the issuance of NCDs, it stated.

(With agency inputs)

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