NTPC tax-free bond issue of Rs.1750 crore opens Tuesday

State-run National Thermal Power Corp. (NTPC) said its bond issue to raise up to Rs.1,750 crore will open Tuesday.

"The issue will open on December 3, 2013, and is scheduled to close on December 16, 2013," NTPC chairman Arup Roy Choudhury told media persons here.

This is the biggest national power producer's first bond issue in over 20 years. The company will issue tax-free secured redeemable non-convertible bonds.

"The base issue size aggregates to Rs.1,000 crore with an option to retain over-subscription up to Rs.750 crore for issuance of additional bonds, aggregating to up to Rs.1,750 crore," NTPC said in a statement.

According to the company, funds raised through the issue would be used for funding capital expenditure and refinancing to meet the debt requirements of ongoing projects.

NTPC has a capacity of nearly 42,000 MW and aims to add around 14,000 MW to its total capacity by the end of 2016-17.

Lead managers to the issue are ICICI Securities, A K Capital Services, Axis Capital, SBI Capital Markets and Kotak Mahindra Capital Company.