New Delhi: The largest power generating company in India, NTPC Limited, Tuesday said it has raised USD 450 million using its 5-year bond in the international market under its USD 6 billion Medium Term Note Programme. NTPC had opened the issue offering 5-year bond on March 26, 2019. NTPC’s USD 6 billion MTN Programme was set up in 2006 and this issuance was the tenth offering under the Programme taking the cumulative amount raised under the MTN Programme to USD 4.30 billion.
Strategic fielding for strategic results
NTPC release stated that having updated the MTN Programme in December 2018, NTPC was well-positioned to take advantage of a supportive primary credit market and conducted comprehensive deal roadshow covering in Singapore, HongKong and London from 21st – 25th March 2019 to reach out to a wide range of fixed income global investors and to appraise them about companies’ financials and its future plans.
The issue was to close on April 3. The notes carry a coupon (rate) of 3.75 % per annum payable semi-annually. The notes will mature after 5 years on April 3, 2024, and all the principal and interest payments will be made in US Dollars.
"NTPC will use the funds to finance its ongoing and new power projects, coal mining projects, acquisition of power plants & renovation and modernization of power stations"- NTPC
The notes represent direct, unconditional and unsecured obligations of NTPC and will rank side by side among themselves and all other unsecured obligations of NTPC, it said.
Asia secured the dominant position
In terms of geographical distribution Asia took the bulk of the subscription at 90%, with supplemental demand of 10% from Europe, Middle East & Africa (EMEA) and offshore US accounts. Distribution by investor type was well diversified as Funds Managers took 69% of the subscription, followed by Banks 22%, Insurance/Pension 8% and PB/Others 1%. NTPC will use the funds to finance its ongoing and new power projects, coal mining projects, acquisition of power plants & renovation and modernization of power stations. Axis Bank, Mizuho, MUFG, SMBC Nikko and Standard Chartered Bank were the joint lead managers & book runners for the offering.
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