NTPC Green plans ₹2,000-3,000 cr bond sale after RBI policy decision

NTPC Green Energy Ltd., India’s most valuable state-run green energy firm, is considering its first local-currency bond sale, according to people familiar with the matter, joining a wave of companies tapping into lower funding costs.

 

A unit of the nation’s largest power generator, the company is weighing an issuance of ₹2,000 crore ($228 million) to ₹3,000 crore rupees through five- or 10-year note, the people said, asking not to be identified as the details are private. The renewable-energy firm is expected to finalise the sale and approach the market after the Reserve Bank of India’s policy rate decision on Wednesday, they said. 

 

 

A spokesperson for parent company NTPC Ltd. didn’t immediately reply to an email seeking comments. 

 

NTPC Green’s planned bond sale comes amid a surge in corporate debt issuance -- companies sold a record amount of bonds locally so far this year, driven by a drop in borrowing costs after the central bank slashed interest rates by 100 basis points since February and injected liquidity. 

 

In June, Crisil Ratings, a local arm of S&P Global, assigned a AAA rating to NTPC Green’s proposed debt, citing robust liquidity and steady annual cash flows. 

 

The company raised $1.2 billion through an initial public offering late last year, marking one of India’s biggest listings in 2024. However, its shares have declined about 18 per cent this year, valuing the company at around $10 billion.