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NTPC to raise $750 million in foreign currency loans

As FE reported earlier, it is also looking for strategic investors to offload some stake in its wholly-owned subsidiaries NTPC Renewable Energy (NREL) before floating initial public offerings of some of its subsidiaries, including NREL.

It also recently quoted the lowest tariff Rs 2.17/ unit for building 500 MW of solar projects Rajasthan in the auction conducted by the Solar Energy Corporation of India.
It also recently quoted the lowest tariff Rs 2.17/ unit for building 500 MW of solar projects Rajasthan in the auction conducted by the Solar Energy Corporation of India.

State-run power producer NTPC will raise $750 million as external commercial borrowing to fund capital expenditure and refinance its existing loans. It has invited banks and financial institutions to place their offers to the company.

It is looking for borrow $500 million, with a green shoe-option of another $250 million, at an average maturity period of seven years. The company said the loan shall be unsecured and will not have any guarantee from the Government of India, which currently holds 51.1% of its stake.

The development comes at a time when the company aims to attain 60,000 mega-watt (MW) of green capacity by 2032 from the current level of around 1,300 MW. Currently, the total installed capacity of the power behemoth stands at 66,900 MW.

NTPC also has around 11,000 MW of thermal power capacities under construction. In the first six months of the ongoing fiscal, NTPC has issued the bonds aggregating to Rs 6,996 crore at an average cost of borrowing of 5.96%. In the same period, it incurred a capital expenditure of Rs 15,137.7 crore and the estimated capital outlay for FY22 stands at Rs 23,736 crore.

As FE reported earlier, it is also looking for strategic investors to offload some stake in its wholly-owned subsidiaries NTPC Renewable Energy (NREL) before floating initial public offerings of some of its subsidiaries, including NREL. The company had quoted the lowest tariffs of Rs 1.99/ unit and Rs 2/ unit in 2021 solar auctions, buoyed by its relatively lower costs of debt owing to its government-backing and positive ratings. It also recently quoted the lowest tariff Rs 2.17/ unit for building 500 MW of solar projects Rajasthan in the auction conducted by the Solar Energy Corporation of India.

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