NTPC to raise up to Rs 3,000 crore through bonds

11 Apr 2023 , 01:22 AM

According to sources familiar with the matter, NTPC, a government-owned power producer, is planning to issue bonds worth up to Rs 3,000 crore for a three-year term this week.

As per the sources, the upcoming bond issuance by NTPC will have a minimum size of Rs 500 crore and a green shoe option of up to Rs 2,500 crore. The raised capital is expected to be allocated towards financing capital expenditure and refinancing existing loans.

NTPC’s upcoming bond sale, which is slated to end on April 17, will mark its first such offering in the current fiscal year. Analysts anticipate a robust response from investors, as has been seen in the past. The bonds are set to mature on April 17, 2026.

It is expected that the bonds will receive a AAA rating from major rating agencies such as Crisil, ICRA, and India Ratings.

One of the insiders stated that the bidding for NTPC’s bond issuance is expected to take place on Wednesday (April 12) between 10 am and 11 am through NSE’s electronic debt bidding platform (EBP).

The three-year bonds offered by NTPC are in high demand from investors due to their specific requirements, and the supply is limited as NTPC does not frequently release such bonds.

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