NTPC signs loan pact worth Rs 1,327 crore with SBI, Japanese bank
State-run NTPC today said it has signed a loan agreement worth USD 250 million with State Bank of India and Japan-based Mizuho Corporate Bank for financing its expansion plans.
"NTPC has signed a term-loan agreement for USD 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," the company informed the stock exchanges today.
The loan agreement was signed on January 29, last week.
"The 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," it said.
The loan carries a floating rate of interest linked to LIBOR and has a door to door maturity of seven years.
LIBOR is short for London interbank offered rate, the rate of interest that top-quality banks charge each other for loans.
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 company's offer for sale opens tomorrow is expected to garner Rs 12,000 crore.
The government plans to sell over 78.32 crore shares, or 9.5 per cent, stake in NTPC through offer for sale (OFS) route.
It currently holds 84.50 per cent in the country's 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
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