In a bid to meet various corporate requirements, state-run power giant National Thermal Power Corporation (NTPC) will raise Rs 3,056.50 crore by issuing secured non-convertible bonds on Friday.
“NTPC has decided to raise Rs 3,056.50 crore on May 3, 2019, through private placement of secured non-convertible bonds in the nature of debentures at a coupon of 7.93 per cent per annum with a door-to-door maturity of three years,” the firm said. The proceeds will be used to meet capex, refinancing of existing loans and working capital requirements, among others.
The bonds are proposed to be listed on both NSE and the BSE. Security for these bonds will be created as per the requirements of, and within the time period prescribed under, the Companies Act, it said.
As part of its strategy to fuel growth, NTPC plans to add capacity through green-field projects, expand existing stations, joint ventures and acquisition of stressed assets.
Currently, it produces nearly 300 billion units of electricity per year and has projects of over 20,000 MW under construction at multiple locations in the country. For instance, the generation major has planned to invest almost Rs 10,300 crore in greenfield power plants in Uttar Pradesh. These plants include a proposed 1,600 Mega Watt thermal power project at Shaktinagar (Singrauli) in Sonebhadra district of UP. Besides, it is setting up two solar power plants of 225 MW and 25 MW capacity at Bilhaur and Auraiya districts respectively, entailing investments of Rs 1,300 crore.
