New Delhi: State-owned power giant NTPC Ltd on Wednesday said it has raised $400 million through issuance of medium-term note in the international markets on 12 March.

This is the ninth offering under the company’s $6 billion medium-term note (MTN) programme since it was set up in 2006, taking the cumulative amount raised under the programme to $3.85 billion, NTPC said in a statement.

According to the statement, having updated the MTN programme in December 2016, NTPC was well positioned to take advantage of a supportive primary credit market and launched a benchmark size, senior, unsecured, fixed rate 10-year bond transaction with an initial price guidance of US Treasuries plus 180 basis point area on 12 March (Asia open).

The offering was met with strong demand and the transaction was oversubscribed within four hours of bookbuilding. In terms of geographical distribution, Asia took the bulk of the transaction at 79%, with supplemental demand from Europe, Middle East and Africa (EMEA) and offshore US accounts at 18% and 3%, respectively. Distribution by investor type was well diversified as funds managers took 46% of the transaction, followed by insurance 36%, public sector 12%, and banks 6%.

With a robust portfolio of projects under execution, the company intends to use the proceeds of the issue to finance its ongoing and new power projects, coal mining projects and renovation and modernisation of power stations. Axis Bank, Barclays Bank, MUFG and Standard Chartered Bank were the bookrunners of the issue.