State-owned NTPC plans to raise term loans worth up to Rs 5,000 crore

State-owned NTPC on Wednesday invited proposals for raising term loans worth up to Rs 5,000 crore.

The power producer has issued a Request for Proposal (RFP) for raising the amount and financial institutions can submit bids till 11 am on August 26, 2021. The bids would be opened the same day at 11.30 am, according to a letter by NTPC to financial institutions.

The loans would be utilised towards capital expenditure for ongoing or new capacity addition programmes. These include takeover of projects, buying out Government of India's equity stake in PSUs under the disinvestment programme, renewable energy projects, coal mining & washeries, renovation & modernisation programmes of various projects, refinancing of loans and general corporate purposes.

The minimum amount of loan offered by banks/ financial institutions shall be Rs 500 crore and in multiples of Rs 500 crore thereafter, as per the company.

In case of two bidders quoting the same rates, preference will be given to bidder quoting rates linked to benchmark other than T-bill (Treasury bill). Still, if more than one offer is available at the lowest rate of interest, the allocation would be made on a pro-rata basis to the lowest bidders.