NTPC plans to raise Rs 1,000 crore through NCDs for funding capex

• The proceeds will be used mainly for funding of capital expenditure and refinancing of existing loans, NTPC said

• The news comes just weeks after Union Finance Minister Nirmala Sitharaman announced a capex target of Rs 1.65 lakh crore for 23 PSUs in the energy sector

New Delhi: State-run NTPC Limited has decided to raise Rs 1,000 crore through private placement of unsecured NCDs (non-convertible debentures), the company said in a regulatory filing on Wednesday. The proceeds will be used mainly for funding of capital expenditure and refinancing of existing loans, NTPC said. The news comes just weeks after Union Finance Minister Nirmala Sitharaman announced a capex target of Rs 1.65 lakh crore for 23 PSUs in the Ministries of Petroleum & Natural Gas, Power, Coal, Mines and Department of Atomic Energy.

The Centre has set capex targets for PSUs in other ministries as well with a view to boost economic growth and create employment in the wake of the COVID-19 pandemic. The PSUs have been mandated to spend at least 50 percent of the capex target for FY2020-21 by Q2.

NTPC to list NCDs at a coupon of 6.29 percent pa

"In line with Corporate Disclosure requirements, we wish to inform that, NTPC has decided to raise Rs 1,000 crore on 31 July, through private placement of unsecured non-convertible bonds in the nature of debentures at a coupon of 6.29 percent pa with a door to door maturity of 10 years, 8 months and 11 days on 11 April 2031. 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 & BSE. 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," said NTPC in the regulatory filing.

NTPC

The present installed capacity of NTPC Limited is 62,110 MW (including 11,755 MW through JVs and subsidiaries), comprising of 70 NTPC stations (24 coal-based stations, 7 combined cycle gas and liquid fuel based stations, 2 hydro-based station, 1 wind-based station), 25 Joint Venture stations (9 coal-based and 4 gas based) and 12 renewable energy projects.

NTPC targets to have nearly 30 GW of its overall power generation capacity from renewable energy sources by 2032.

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