NTPC targets $1.44b debt issuance

The debt will fund capacity expansion.

India’s NTPC Group is seeking the approval of its shareholders to raise up to $1.44b (INR12,000 crore) through the issuance of non-convertible debentures (NCD) on private placement basis.

“As the company is under capacity expansion mode, [a] major portion of [the] capital expenditure requirement of the company has to be funded by debt,” NTPC said.

“In addition to capital expenditure requirement as explained above, [the] company also needs to borrow for meeting its working capital requirement and other general corporate purposes which is partly proposed to be met through issuance of NCDs,” it added.

The company said its board of directors approved the issuance on 29 June, and has recommended the approval of the proposal. The matter will be discussed during the annual general meeting on 29 August.

$1 = INR83.93