You are here: Home » Companies » News
Business Standard

NTPC to raise $750 mn via ECB term loan for expansion in RE, coal mining

The loan shall be unsecured, without any guarantee or letter of comfort from Govt of India

Topics
NTPC | loan | coal industry

Shreya Jai  |  New Delhi 

Photo: Bloomberg
Photo: Bloomberg

India’s largest power generating company, state-owned limited will raise $750 million through external commercial borrowing as term to fund its expansion plans in the renewable energy and coal mining businesses.

The company floated a ‘request for proposal’ (RfP) on Monday. “ Ltd is looking to raise external commercial borrowing (ECB) in the form of term amounting to $500 million plus green shoe option of $250 million,” the RfP said.

The RfP stated, the proceeds from the would be utilised towards “capital expenditure for ongoing/new capacity addition programme including renewable energy projects, coal mining & washeries, refinancing of existing ECBs/rupee loans availed domestically for capex etc.”

The loan shall be unsecured, without any guarantee or letter of comfort from the Government of India. Negative lien will be provided with carve out for certain permitted borrowing for which security can be created by the company, said the RfP.

The average maturity period of the term loan will be seven years under the proposed ECB. Repayments will be made in seven equal annual instalments starting from the fourth year. Last date for submission of bids is January 31, said the company.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, January 17 2022. 19:34 IST
RECOMMENDED FOR YOU
.