NHPC inks pact with HDFC bank for securitization worth ~Rs1020cr; stock jumps ~1.5%

25 Feb 2022 , 02:18 PM

NHPC Limited, the Indian government’s hydropower board, announced that the company has entered into an agreement with the lender HDFC bank to securitize its return on equity of its 540 Mw Chamera-I Power Plant in Himachal Pradesh for a period of 10 years.

The securitization facility has been valued at Rs1,016.39 crore or 5.24% per annum discounting rate linked to three-month T-Bills.

In December 2021, NHPC’s board has also approved the proposal for monetization by securitization through bidding ROE of Chamera-I Power Station, and one or more other power stations for 5 to 10 years in one go or over a period of time.

NHPC’s scrip added 1.47% in today’s trade at Rs27.65 against its previous closing price of Rs27.25. It touched day’s high and low of Rs28.15 and Rs27.25 respectively so far in today’s trade.

On the contrary, HDFC Bank added 2.71% in today’s trade at Rs1,457.85.