NTPC has priced its 10-year dollar bonds at 170 basis points over the corresponding US Treasury yield to raise $400 million, investment bankers aware of the deal told FE. The initial price guidance on the bonds was 180 bps over the US Treasury, which got compressed by 10 basis points at the time of final pricing. The bonds are being issued in the Reg S format, which allows investors from Asia and Europe to participate. “The market conditions are not quite easy as of now because there is plenty of supply coming in from Asia. However, we have got a good quality orderbook for the issue,” said a banker close to the deal. Moody’s Investors Service has assigned a Baa2 rating to the proposed senior unsecured dollar notes to be issued by NTPC. The rating outlook is stable, it said. “The notes will be issued under NTPC’s existing $6-billion medium-term note programme (MTN) which is rated (P)Baa2. The company plans to use the proceeds to finance capital expenditure of ongoing and/or new projects, coal mining projects and renovation and modernisation of power stations,” the ratings agency said. Post the sovereign rating upgrade last year, Moody’s had upgraded NTPC’s issuer rating to Baa2 from Baa3 and had revised the outlook to stable from positive. “Moody’s has also upgraded the rating on the senior unsecured MTN programme of NTPC to (P)Baa2 from (P)Baa3,” the ratings agency had indicated. Fitch has also assigned the company’s proposed senior unsecured notes an expected rating of ‘BBB-(EXP)’. The company had earlier issued a 10-year dollar bonds in February 2016 at a spread of 255 basis points over the 10-year US Treasury yield. In 2017, the firm had issued 10-year Euro-denominated bonds to raise 500 million Euros. FE had reported earlier that with credit spreads continuing to remain compressed, capex and acquisitions boosting fund requirements, many Indian firms are currently looking to tap the overseas bond market, or have already initiated the process.