Power News We love to talk!

JUL 30 2016

NTPC mandates for first Green corporate Masala bonds

  • Economic Times, ET Bureau / Hyderabad
  • Created: Sat 30th JUL 2016


Largest Indian power company NTPC has mandated Axis Bank, HSBC, MUFG and Standard Chartered Bank as joint lead managers and joint bookrunners for an offering of Green Masala bonds. This would be the first corporate Masala bond offering to commit proceeds to Green projects, after HDFC opened the offshore rupee bond market for corporate issuers earlier this month.

NTPC plans to raise 10 billion rupees ($149 million), plus a greenshoe option, from the Reg S offshore rupee offering, according to market sources. The bonds will be denominated in rupees but settled in US dollars. Bookbuilding will potentially happen next week and the bonds will be listed on the London Stock Exchange and Singapore Exchange.

NTPC is rated BBB- (Stable) by both S&P and Fitch. India Ratings & Research in a note earlier this week said that public sector units and quasi-sovereign companies will come into to the market to diversify their funding in this round of Masala bond issuances.

However, some bankers are still questioning how many issuers are willing to bear the extra cost of India's 5 percent withholding tax, making it slightly more expensive for them to issue rupee bonds offshore.



NTPC Ltd Fitch United States Public sector units Tax Power India

Related News

  • RIL net profit up 4.5% on higher refining margins  Read more
  • Perk up renewable energy policy to address power woes in Uttar Pradesh: ASSOCHAM  Read more
  • Greenko to hit one giga watt generation by Aug-Sept  Read more
  • Govt to sell 5% in NTPC tomorrow at Rs 122, eyes Rs 5,000 cr  Read more
  • 27 power stations grapple with less than 7-day coal stock: CEA  Read more
  • Indian Oil Corporation to invest $4 billion in British Columbia province in Canada  Read more
  • Wastewater for India's coal plants an impractical dream  Read more
  • India needs to say no to nuclear power: Greenpeace  Read more
  • Prioritising gas supplies  Read more
  • CERC constitutes high-level committee to consider aspects of RGMO/FGMO implementation  Read more