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.

 

Tags

NTPC Ltd Fitch United States Public sector units Tax Power India

Related News

  • Policy revamp key to boost renewable energy projects  Read more
  • Defunct Indraprastha power station to be converted into solar plant; move to showcase Indias commitment to clean energy  Read more
  • RIL, Essar to benefit from Cairn's Rajasthan crude  Read more
  • Hydel revival, commercial mining by private companies crucial, secy group tells Modi  Read more
  • Budget expectations 2014: Oil & gas sector  Read more
  • Oil wars: How Kremlin's $13 billion Indian deal almost fell apart  Read more
  • Unable to recover costs, private discoms in Delhi seek govt help  Read more
  • Power supply for Metro: tenders for consultant to be called soon  Read more
  • NGCs subsidy bill may rise 22% to Rs 60,000 crore this year  Read more
  • WTO ruling on solar power: China supports India's stand  Read more