State-run NTPC said on Wednesday it has signed a loan agreement worth $250 million with State Bank of India and Japan-based Mizuho Corporate Bank for financing its expansion plans. ďNTPC has signed a term-loan agreement for $250 million (approximately Rs 1,327 crore) with the New York branch of State Bank of India and Singapore branch of Mizuho Corporate Bank as lead arrangers and lenders,Ē the company informed the stock exchanges.
The loan agreement was signed on January 29, last week. ďThe proceeds of the loan shall be utilised towards capital expenditure for procurement of goods and services for the ongoing and new projects and renovation of stations of the company,Ē it said. The loan carries a floating rate of interest linked to Libor and has a door-to-door maturity of seven years. It is often used by banks as a base for calculating the interest rate they charge on other loans. Libor is a floating rate, changing all the time.
Meanwhile, the companyís offer for sale opens on Thursday and is expected to garner R12,000 crore. The government plans to sell over 78.32 crore shares, or 9.5%, stake in NTPC through offer for sale (OFS) route.
It currently holds 84.5% in the countryís biggest generation utility. The government had last month appointed Citigroup, SBI Capital Market and Morgan Stanley merchant bankers for managing NTPC stake sale. Department of disinvestment has recently completed 10% stake sale in Oil India through the auction route, raising over R3,141 crore. The government has raised over R10,000 crore through PSU stake sale so far this fiscal.