NTPC to Raise Rs 4374.10 Crore via Bonds

NTPC has said it will raise Rs 4,374.10 crore on April 16, 2020, through the issuance of unsecured non-convertible bonds on private placement basis.

State-run power giant NTPC has said it will raise Rs 4,374.10 crore on Thursday i,e. April 16, 2020, through the issuance of unsecured non-convertible bonds on private placement basis. As per the PSU, the funds raised will be utilised for funding of capital expenditure, refinancing of existing loans and other general corporate purposes, the company said in a regulatory filing.

The bonds are proposed to be listed on both National Stock Exchange and 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, it noted.

“NTPC has decided to raise Rs 4,374.10 crore on 16 April 2020 through a private placement of unsecured non-convertible bonds in the nature of debentures at a coupon of 6.55 percent per annum with a door to door maturity after 3 years 1 day,” it said.

These bonds are issued under the approval obtained through shareholders’ resolution on 21 August 2019, it added.

Recently, we had reported that Tata Power Solar, the renewable arm of utility giant Tata Power, had received a Letter of Award (LoA) from NTPC to develop 300 MW grid-connected solar projects under CPSU Scheme Phase-II. Tata Power Solar has won this solar photovoltaic (PV) project under the reverse bidding auction held in February at an all-inclusive price of Rs 1,730.16 crore. Furthermore, the said project expected is expected to be commissioned in the time frame of 18 months by September 2021.

Prior to that, the firm had announced that it will contribute Rs 257.5 crore to the PM-CARES Fund to support the fight against COVID-19. While Rs 250 crore has been given by the company, NTPC employees have contributed their one day’s salary amounting to Rs 7.5 crore towards the PM-CARES Fund, a company statement said. The company said that Rs 11 crore is being spent additionally for undertaking protective measures at various locations.

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Ayush Verma

Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.

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