Power News We love to talk!

APR 28 2017

NTPC's Rs 2,000 cr masala bond issue oversubscribed

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 28th APR 2017

India’s largest power generation company NTPC Ltd’sRs 2,000 crore masala bond issue was oversubscribed with participation of more than 40 accounts, the company said in a statement.

NTPC said based on the strong order book, the notes have been successfully priced at a coupon of 7.25 per cent payable annually.

The company priced its second rupee-denominated five year masala bonds offering for Rs 2000 crores, in the international markets on 25 April 2017, becoming the only state owned enterprise to tap masala bonds market twice.

These bonds shall be listed at Singapore Stock Exchange and London Stock Exchange, NTPC said. This is the eighth offering under the company’s $4 billion medium term note (MTN) programme since it was set up in 2006, taking the cumulative amount raised under the programme to $3.46 billion.

The 5 year Senior Unsecured RegS Masala Bonds of NTPC have been issued at the lowest yield for any Masala bond by an Indian issuer till date and have been priced within AAA Corporate Bonds of equivalent tenor in domestic market.

In terms of geographical distribution, Asia took the bulk of the transaction at 83 per cent, European Union area at 14 per cent and US Offshore at 3 per cent. In terms of investor types – central banks and sovereign wealth funds comprised 50 per cent, asset managers and fund managers 30 per cent, banks 14 per cent and private banks 6 per cent.

The company intends to use the proceeds of the issue to finance its ongoing and new power projects within India. Axis Bank, Barclays Bank, ICICI, MUFG, and Standard Chartered Bank were the bookrunners for the offering.

Tags

Finance Power Generation NTPC Ltd Asia United States Power India

Related News

  • PSU oil cos seek immediate hike in petrol price  Read more
  • Chandigarh electricity department seeks 20 per cent hike in power tariff  Read more
  • Cairn India profit drops 65% in Q1  Read more
  • OERC dismisses OPTCL petition seeking approval of unitary charges for competitive selection of TSP  Read more
  • Global coal power plans shrink 14% in 2016, led by China, India  Read more
  • Suresh Prabhu unveils 10-year energy plan for Railways to save Rs41,000 crore  Read more
  • NTPC says miner misled media on coal quality test  Read more
  • Reliance Infra bags Rs 1,081 crore contract for Kudankulam nuclear project  Read more
  • India enters global smart meter race to fight utility losses  Read more
  • Dharmendra Pradhan kicks off roadshow for auction of 46 oil & gas fields  Read more