NTPC to raise up to $750 mln worth of offshore loans in Japanese yen

NTPC to raise up to $750 mln worth of offshore loans in Japanese yen

Proceeds from the issuance will be utilised for capital expenditure towards the company's new capacity addition programme, renewable energy projects, including hydro, coal mining, and refinancing offshore or domestic loans obtained for capital expenditure

FPJ Web DeskUpdated: Thursday, February 16, 2023, 02:46 PM IST
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NTPC to raise up to $750 mln worth of offshore loans in Japanese yen | Image: NTPC (Representative)

NTPC Ltd plans to raise up to $750 mln worth of external commercial borrowings in the Japanese yen, in the form of unsecured term loans maturing in up to 10 years, the company said via an exchange filing.

The issue has a $150 million base size and a $600 million greenshoe option.

Proceeds from the issuance will be utilised for capital expenditure towards the company's new capacity addition programme, renewable energy projects, including hydro, coal mining, and refinancing offshore or domestic loans obtained for capital expenditure.

The term loan has an average duration of seven years, and beginning in the fourth year, repayment will be made in seven equal annual installments. On a semi-annual basis, interest will be paid out in Japanese yen.

On March 1, bids may be placed up until 15:00 IST, and they will be publicly opened at 15:15 IST the same day.

The agreement is expected to be signed on or before March 31, or on any other date agreed upon by the parties.

"The loan shall be unsecured, without any guarantee or letter of comfort from the government of India. Negative lien will be provided with carve out for certain permitted borrowing for which security can be created by the company," the filing said.

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