India’s largest power generating company —
NTPC Limited (NTPC) announced on Tuesday that it has successfully raised $400 million from the global markets.
NTPC said it priced a US$ 400 million Medium Term Note offering in the international markets on 12th March 2018.
The offering was met with strong demand and the transaction was oversubscribed within 4 hours of bookbuilding.
Axis Bank, Barclays Bank, MUFG and Standard Chartered Bank were the bookrunners on the offering
This is the ninth offering under the company’s US$ 6 billion Medium Term Note MTN programme since it was set up in 2006, taking the cumulative amount raised under the programme to US $ 3.85 billion.
Having updated the MTN programme in December 2016, NTPC was well positioned to take advantage of asupportive primary credit market and launched a benchmark size, senior, unsecured, fixed rate 10 year bond transaction with an initial price guidance of US Treasuries (UST) plus 180 bps area on 12th March (Asia open).
At Asia close, the guidance was subsequently revised to T+170 bps. The final orderbook was over US$ 750 million, an oversubscription of nearly 1.5 times, with orders from more than 60 accounts. The bonds were finally priced at UST+170 bps with the coupon fixed at 4.50% per annum.
In terms of geographical distribution, Asia took the bulk of the transaction at 79%, with supplemental demand from Europe, Middle East & Africa (EMEA) and offshore US accounts at 18% and 3% respectively. Distribution by investor type was well diversified as Funds Managers took 46% of the transaction, followed by Insurance 36%, Public Sector 12%, and Banks 6%.
With a robust portfolio of projects under execution, the Company intends to use the proceeds of the issue to finance its ongoing and new power projects, coal mining projects & renovation and modernization of power stations.
Brief about USD 400 million issue under MTN programme
Date of Launch : 12/03/2018
Amount: USD 400,000,000
Tenure: 10 Years
Coupon: 4.50% p.a.
Yield: 4.585% p.a. (UST+170 bps)
Date of Issue: 19/03/2018
Date of Maturity: 19/03/2028
Investor Distribution by Region
|Middle East& Africa (EMEA)||18%|
|Offshore US Investor||3|
Investor Distribution by Type