NTPC ties up Rs2,000 crore in loan and bonds with LIC
27 Dec 2007
Mumbai: Public sector power producer National Thermal Power Corporation Ltd (NTPC) is raising Rs2,000 crore ($507 million) through a loan and a bond issuance to fund its capital expenditure.
NTPC has signed a loan agreement for Rs1,000 crore along with a bond subscription agreement for another Rs1,000 crore with state-run insurer, Life Insurance Corporation of India, according to a filing with the Bombay Stock Exchange (BSE).
NTPC said the proceeds of the loan and bond subscription with LIC would be used to finance capital expenditure of its power generation projects, coal mining business, renovation and modernisation activity as also the LNG business.
The door-to-door maturity of both the agreements is 11 years, the repayments to take place in 14 half-yearly instalments commencing after four years. The interest rate/coupon is linked to 10 year G-sec rate plus margin. The proceeds under these agreements are to be utilised before end-March 2008.
The coupon rate was at a margin above the yield on the 10-year government bond, NTPC said.
.webp)
