NTPC Mops Up $400 Mn Via $ Bonds, Races Past 52,000 MW Capcity

NTPC Mops Up $400 Mn Via $ Bonds, Races Past 52,000 MW Capcity

Generation utility NTPC has mopped up $400 million through a 10-year dollar-denominated bond issue, even as the state-run company switched on the third 800-MW supercritical unit of Kudgi power station to race past a total generation capacity of 52,000 MW as a corporate group.

The bonds, part of the company’s plan to raise $6 billion, will carry an interest of 4.5% and listed on the Singapore Exchange Securities Trading Ltd and India International Exchange IFSC. The offering elicited strong demand, getting oversubscribed within four hours of book-building.

Funds managers took 46% of the transaction, followed by insurance companies at 36%, public sector 12% and banks 6%. In terms of geographical distribution, Asia took the bulk of the transaction at 79%, with supplemental demand from Europe, Middle East and Africa (MEA) as well as offshore US accounts at 18% and 3 per cent, respectively.

NTPC aims to use the funds to meet requirement of capital expenditure for ongoing and new projects, coal mining plans as well as upgrade of old units. The Budget had indicated NTPC’s capital expenditure at Rs 23,000 crore for in 2018-19 against Rs 28,000 crore in 2017-18.

With the third unit of the Kudgi power station, NTPC’s own capacity stands at 45,300 MW, while the NTPC group that includes joint ventures now represents a capacity of 52,191 MW.

NTPC has 20 coal-fired, seven gas-fired, 11 solar power, two Hydel and one wind power plants. The company is currently building an additional capacity of over 20,000 MW at multiple locations in the country. It has eight power plants as subsidiaries and joint ventures. Read More

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