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The country’s largest power producer, NTPC, raised Rs 2,000 crore through rupee-denominated green masala bonds from offshore markets. The company launched the bonds on Wednesday, with an initial target to raise Rs 1,000 crore. The company raised the size to Rs 2,000 crore and priced the bond at an annual yield of 7.48 per cent with five-year tenure.
These green masala bonds are a first for both the country and the company. This is also the first dual listing, at Singapore Exchange (SGX) and London Stock Exchange.
NTPC received order book of over Rs 2900crore with participation from more than 60 accounts, said NTPC in a public statement. The bond priced 20 bps inside the 5year AAA Bond yields which closed at 7.68 per cent.
Gurdeep Singh, chairman and managing director, NTPC said, “NTPC is marching ahead to increase its renewable portfolio to 10GW, in furtherance of the Government of India target to achieve 175GW of renewable capacity by 2022. The offering of Green Masala Bonds reflects our commitment to renewable energy in the times ahead.”
In earlier communications, the company executives had said NTPC plans to raise close to Rs 15,000 crore through Green Masala Bonds to avail funds at cheaper rates for its renewable energy projects.
Investors from Asia contributed 70 per cent to the transaction with the rest from Europe and Middle East. The Notes were distributed to high quality fixed income accounts: 80 per cent to fund managers, Insurance companies and sovereign wealth funds, 15 per cent to banks and 5 per cent to others
“We were keen to tap a new investor base for our renewable energy programme and avail of offshore financing without the associated exchange risks, both objectives we could achieve with this offering,” said Kulamani Biswal, Director(Finance), NTPC. Axis Bank, MUFG, HSBC and Standard Chartered Bank were the joint book-runners and lead managers for the transaction.
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