NTPC, India’s largest energy conglomerate has decided to raise Rs. 4,374.10 crore on 16 April 2020 through the placement of unsecured non-convertible bonds.
As per the press release the funds will be utilized for, inter alia, funding of capital expenditure, refinancing of existing loans and other general corporate purposes.
The document stated that these bonds are proposed to be listed on both NSE & BSE. Bond Trust Deed for these bonds will be duly executed as per the requirements of and within the period prescribed under, the Companies Act and rules specified therein.
“NTPC has decided to raise Rs 4,374.10 crore on 16 April 2020 through a private placement of unsecured non-convertible bonds like debentures at a coupon of 6.55 percent per annum with a door to door maturity after 3 years 1 day,”, the release said.
These bonds are issued under the approval obtained through shareholders’ resolution on 21 August 2019, According to the document.
Recently, Tata Power Solar, an integrated solar company and a wholly-owned subsidiary of Tata Power said it has received the Letter of Award (LoA) to build the 300 MW under the CPSU-II scheme for NTPC at an all-inclusive price of Rs 1,730.16 crore. The company had bagged the order in a post reverse auction held on February 21. The Commercial Operation Date (COD) for this grid-connected solar photovoltaic project is set for September 2021 (18 months).
Recently NTPC has announced that it will contribute INR 257 Crore to the PM CARES Fund to support the government in the fight against COVID-19. While INR 250 crore have been given by the company, NTPC employees have also contributed INR 7.5 crore towards the PM CARES Fund as their one day salary. The company also said that INR 11 crore is being spent additionally by NTPC for protective measures at various locations.