The Hindu Business Line : NTPC to raise $500 m from US market

NTPC Ltd intends to raise $500 million (Rs 2,250 crore) from the US market, with the aim of accessing funds at a cheaper rate. NTPC's Director-Finance, Mr A.K. Singal, told Business Line recently that the company was well covered in terms of funding for its ongoing projects. He said that the company had drawn only $300 million out of its $1 billion medium-term-note programme. It could draw any amount up to $700 million under the programme without having to go through documentation and approvals.

These notes mature in 2016 and are priced at 140 basis points over the benchmark 10-year US treasury with a coupon rate of 5.87 per cent.

Funding

In addition, NTPC has an agreement with Life Insurance Corporation of India to borrow Rs 6,500 crore. Of this, NTPC has borrowed Rs 3,000 crore and the remaining Rs 3,500 crore could be accessed anytime. Further, in September, NTPC signed a loan agreement with the Asian Development Bank to borrow $300 million. With all these funds, the company's upcoming projects would cruise through.

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