NHPC Raises INR 750 Crore Under CPSU Scheme, Plans Solar Investments

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National Hydroelectric Power Corporation  Limited ,(NHPC), A Govt. of India Enterprise under Ministry of Power) stated that it has raised Rs 750 crore on Thursday through the private placement of bonds at a competitive interest rate of 6.80% p.a. for a loan tenure of 10 years.

“The issue structure consists of a base size of Rs.500 crore with Green Shoe option of Rs.250 crore”, the company said.

NHPC claims that the issue received an overwhelming response by the market and it oversubscribed 3.87 times i.e. for Rs.2899 crore amid COVID-19 outbreak. 

The company further claims that The coupon rate of 6.80% is the lowest in the current fiscal and lower by 30 bps or 0.30% than the prevailing AAA rated 10 years Bonds at 7.10%.

NHPC carries the highest credit credentials and rated AAA by leading Rating Agencies.

In February last year, the government had approved the proposal for setting up 12,000 MW grid-connected solar photovoltaic (PV) power projects with a viability gap funding of Rs 8,580 crore. The Central Public Sector Undertaking (CPSU) Scheme Phase-ii aims to set up 12,000 MW of solar capacity by government companies by the financial year 2022-23 with VGF support.

Recently, The National Hydroelectric Power Corporation (NHPC) Issued the results of its 2000 MW ISTS-connected solar power projects (ISTS-viii). The Shortlisted bidders for this project are SoftBank, O2 Power, Axis Energy Ventures India Private Limited, EDEN Renewables, and Avaada Energy. Softbank, Axis Energy, O2 Power, and EDEN quoted tariffs of ₹2.55 /kWh each whereas Avaada Renewables quoted a tariff of Rs 2.56/kWh. Awarded capacity for the shortlisted bidder is 600 MW, 400 MW, 380 MW,300, and 320MW respectively.

On 14 April, NTPC 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.

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