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NEW DELHI: State-owned NTPC plans to raise up to $750 million through external commercial borrowing (ECB) in the form of a term loan.
According to a request for proposal (RFP), floated by NTPC, the amount raised will be utilised for capital expenditure for ongoing or new capacity addition programmes, including renewable energy projects, coal mining, and washeries. The proceeds of the term loan will also be used to refinance existing ECB or rupee loans availed domestically.
"NTPC is looking to raise external commercial borrowing (ECB) in the form of term loan amounting to $500 million plus a green shoe option of $250 million, subject to applicable statutory approvals," the company said in a statement.
The average maturity period of the term loan will be seven years under the proposed ECB. Repayments will be made in seven equal annual instalments starting from the fourth year.
"The loan shall be unsecured, without any guarantee or letter of comfort form the government of India. Negative lien will be provided with carve out for certain permitted borrowing for which security can be created by the company."
The signing of the facility agreement is envisaged to be completed on or before 15 March 2022 or any date agreed upon by the company.
Last date for bid submission is 31 January till 3pm. Bids will be opened at 0315 pm on the same day.
The public sector enterprise, in the PFP document, said that it has been raising funds from international market in the form of term loans and 'Reg-S' bonds, under ECB guidelines of the Reserve Bank of India (RBI), for funding its power projects including renewable energy projects in India.
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