State-owned NTPC on Wednesday invited bids for term loans worth up to ₹5,000 crore, which would be utilised by the power producer towards capital expenditure for ongoing or new capacity addition programmes.
These include takeover of projects, buying out government’s equity stake in public sector units under the disinvestment programme, renewable energy projects, coal mining and washeries, renovation and modernisation programmes of various projects and refinancing of loans and general corporate purposes, according to a letter by NTPC to financial institutions.
The power producer has issued a Request for Proposal (RFP) for raising the amount and financial institutions can submit bids till 11 am on August 26. The bids would be opened the same day at 11.30 am.
The minimum amount of loan offered by banks/financial institutions shall be ₹500 crore and in multiples of ₹500 crore thereafter, as per the company.
In case of two bidders quoting the same rates, preference will be given to bidder quoting rates linked to benchmarks other than T-bill (Treasury bill). Still, if more than one offer is available at the lowest rate of interest, the allocation would be made on a pro-rata basis to the lowest bidders, it added.