NTPC to raise Rs 4,000 crore via 2nd tranche of NCDs for capex, refinancing

New Delhi: NTPC Limited, the country’s largest power generator, is set to raise Rs 4,000 crore through unsecured, non-convertible debentures (NCDs) on May 9, 2025. This issuance marks the second tranche under a board-approved fundraising plan and follows a shareholders' nod received on August 29, 2024.

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According to a regulatory filing by NTPC Limited on Tuesday, the NCDs will carry a coupon rate of 6.84 percent per annum and will mature in 10 years, on May 9, 2035. The debt instruments are being issued via private placement and are proposed to be listed on the BSE.

The funds mobilized through this tranche will be used for capital expenditure, refinancing of existing loans, and other general corporate purposes, NTPC said.

Earlier, PSU Watch had reported on NTPC’s plan to raise up to Rs 4,000 crore through unsecured NCDs as part of its broader financing strategy to support capacity expansion and reduce borrowing costs. The latest issue aligns with the company’s ongoing efforts to strengthen its balance sheet while meeting its capital requirements for future growth.

As India’s energy transition accelerates, NTPC has been aggressively investing in both thermal and renewable energy assets, requiring significant capital infusion over the coming years.

The debenture trust deed for this issue will be executed in accordance with the requirements of the Companies Act and relevant rules within the stipulated timeframe, the company stated in its disclosure.

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