NTPC plans to raise funds of around USD 750 million via ECB route

NTPC plans to raise around USD 750 million via ECB route to fund its ongoing/new projects.

In order to fund its power projects, including renewable energy, the state-owned NTPC has invited a request for proposal (RfP) for raising up to $750 million (around Rs 5,570 crore) via external commercial borrowing (ECB). 

NTPC plans to utilize the proceeds to fund its power and renewable energy projects. 

The deadline for submitting bids is January 31, 2022 (by 1500 hours). Opening of bids is scheduled for January 31, 2022 (15:15 hours).

According to the RfP document floated by NTPC on Monday, the company wants to raise external commercial borrowing (ECB) in the form of a term loan of $500 million plus a green shoe option of $250 million…. Accordingly it is requested to quote both unconditional and firm rates to raise the ECB.”

The document states that the loan proceeds will be used for capital expenditure related to ongoing/new capacity addition programmes.

These include renewable energy projects, coal mining and washeries, as well as refinancing existing ECBs / rupee loans taken out domestically to finance capex projects, etc.

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