NTPC raises $300 million via 10-yr bond

National Thermal Power Corporation (NTPC) on Thursday raised $300 million through a 10-year bond issue. This was the first 10-year issue from India since the Asian financial crisis and sets an important 10-year benchmark for other Indian issuers.

The $300 million raised is the first draw-down of NTPC's $1 billion medium term notes (MTN) programme. The issue was priced in London at LIBOR plus 140 basis points.

"The transaction had an overwhelmingly positive response from the international investor community, demonstrating both a belief in NTPC's strong credit story and vote of confidence in the India growth story," said Raju Shukla, Managing Director for Barclays Capital's India investment banking business.

"We see a great opportunity for other Indian companies, especially in the infrastructure sector, to follow NTPC's lead and come to the market in the near term," he said.

A total of 105 investors had bid for the issue with the book swelling to $1.5 billion. Asia accounted for 50.2 per cent of the demand for the NTPC bond, followed by Europe with 41.6 per cent and offshore US 8.2 per cent.

Banks bid for 41.6 per cent of the bond issue, asset managers 37.6 per cent, insurance companies 15.3 per cent and retail investors 5.5 per cent.