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NHPC Limited raises Rs 750 crore via bond

NHPC has raised Rs 750 crore today through private placement of bonds at very competitive interest rate of 6.80 percent per annum for a loan tenure of 10 years

New Delhi: NHPC Limited, a premier hydropower company and a Miniratna PSU under the Ministry of Power, has raised Rs 750 crore via bond on Wednesday. According to a press release from the Ministry of Power, the state-run hydropower generation company has raised this amount through the private placement of bonds at a very competitive interest rate of 6.80 percent per annum for a loan tenure of 10 years. The company has said that thee issue structure consists base size of Rs 500 crore with Green Shoe option of Rs 250 crore.

The company further said that the issue was taken very overwhelmingly by the market and oversubscribed 3.87 times i.e. for Rs 2,899 crore amid Coronavirus (COVID-19) outbreak. The coupon rate of 6.80 percent is the lowest in the current fiscal and lower by 30 bps or 0.30% than the prevailing AAA-rated (AAA is the highest possible rating that may be assigned to an issuer’s bonds by any of the major credit rating agencies) 10 years bonds at 7.10 percent. NHPC carries the highest credit credentials and rated AAA by leading rating agencies.

Earlier, NHPC had raised Rs 500 crore on March 3, through the private placement of secured, redeemable, taxable, non-cumulative, non-convertible 6.89 percent NHPC AA-1 Series Bonds.

NHPC Limited

NHPC Limited, formerly known as National Hydroelectric Power Corporation Limited, was incorporated on November 7, 1975, as a Central government enterprise for the development of hydropower. It is a Miniratna PSU under the administrative control of the Ministry of Power. NHPC Limited, a premier hydropower company and a Miniratna PSU under the Ministry of Power. The company had paid an interim dividend of Rs 840.96 crore to the government for the financial year 2019-20.