NTPC raises Rs.1,072 cr through 15-year bonds issue

The Dollar Business Bureau

NTPC, the state-run power generator, has raised Rs.1,072 crore through its 15-year bond issue, at a coupon rate of 8.10 percent.

The Power Minister Piyush Goyal, in a tweet, said that NTPC has raised Rs.1,072 crores at a coupon of 8.10 percent which is an indicator of robust and growing power sector.

The issue of 15-year bonds was oversubscribed by 1.74 times, he added.

The 61st series of bonds that has been issued has a door-to-door maturity of 15 years. The tenders amounting to Rs.1,305 crore were received against the issue size of Rs.750 crore.

After the creation of pricing tension, a coupon of 8.10 percent was achieved, yielding a curve of 10-14 basis points and Rs.1072.50 crore were allotted to the successful bidders.

All the proceeds of the issue will be used for capital expenditure.

NTPC is planning to raise $1 billion through bond issuance for its capital expenditure and other requirements during the current fiscal.

The company has raised Rs.100 crore earlier this month through private placement of secured non-convertible debentures at a voucher of 8.05 percent per annum with a 10-year door-to-door maturity.

All these proceeds will be used to finance the capital expenditure and to refinance the requirement of debt in the on-going process including recoupment of expenses already occurred.

NTPC has an installed capacity of 47,178 MW through seven gas-based plants, 18 coal-based plants, 9 solar powered, one hydro and 9 joint venture power stations. 

By 2032, the state-owned company is planning to have a total power generation capacity of 128 GW.