NTPC's Rs 2,000-cr Masala Bonds oversubscribed

NTPC Limited priced its rupee-denominated 5-year Masala Bonds offering for Rs 2,000 crore, for the second time in international markets. It is the only state-owned company to tap Masala Bonds market twice.

This is the eighth offering under the company’s $4 billion Medium Term Note (MTN) programme since 2006, taking the cumulative amount raised under the programme to approximately $3.46 billion. These bonds would be listed at the Singapore Stock Exchange and the London Stock Exchange.

The issue was oversubscribed with the participation of more than 40 accounts and was successfully priced at a coupon of 7.25 per cent payable annually, NTPC said in a statement.

Fitch Ratings had assigned an expected rating of BBB-/Stable to the company's rupee-denominated senior unsecured notes.

These Bonds 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 the domestic market,” said the company in a public statement.  

In terms of geographical distribution, Asia took the bulk of the transaction at 83 per cent while The European Union accounted for 14 per cent and while US share was 3 per cent. Among major investors include Central Bank/Sovereign Wealth Funds, Fund Managers and private banks.

The proceeds of the issue will be issued to finance ongoing as well future power projects within India, stated NTPC.