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NTPC to get 5 bn yen Sumitomo Bank loan
PRESS TRUST OF INDIA
New Delhi, Sept 3: National Thermal Power Corporation (NTPC) will enter into an agreement with Sumitomo Bank for a 5 billon Yen (about Rs 250 cr) loan to repay the yen loan taken by the power utility. The mandate for the bank was given last month and a final loan agreement with NTPC will be signed on Sept 14, NTPC officials said . NTPC will be able to save about Rs 6 cr from there-financing deal. The entire loan repayment would be made on Sept 25, the officials said. NTPC had taken a five bn Yen loan from the Japanese Export and Import Bank (J-Exim) at an interest rate of about 2.5 per cent over London Inter Bank Offered Rate (LIBOR) for funding its various power projects including the Ramagundam Thermal Power Station, the officials said. The loan from Sumitomo Bank would be at an interest rateof about 1.4 % to 1.5 % over LIBOR. The corporation had earlier repaid its costly loans through re-financing to save higher interest rates. The deal was arranged by SBI Caps, the officials said. NTPC, with an existing generation capacity of over 19,000 mw, has set an ambitious target to become a 40,000 mw plus firm by the end of 2012 for which it is also negotiating with various FIs and banks to arrange credit for the future projects. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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