NHPC to issue ₹5,600 crore worth corporate bonds next financial year
1 min read 29 Mar 2023, 05:40 AM ISTNHPC announced to issue corporate bonds of up to Rs.5,600 crore during next financial, the company said on Tuesday
PremiumThe govt-backed, National Hydroelectric Power Corporation, has announced to raise up to Rs.5,600 crore of debt during next financial year through corporate bonds, the company said on Tuesday.
The company in its stock filing, informed that the funds will be raised through issuance of corporate bonds in one or more series/ tranches on private placement basis and/ or raising of Term loans/ External Commercial Borrowings (ECB) in suitable tranches.
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"It is to inform that Board of Directors of NHPC Limited in its meeting held on Tuesday, has considered and approved the proposal for raising of Debt upto Rs.5,600 crore during financial year 2023-24 through issuance of secured/unsecured, redeemable, taxable, non-cumulative non-convertible Corporate Bonds in one or more series/ tranches on private placement basis and/ or raising of Term loans/ External Commercial Borrowings (ECB) in suitable tranches," the company said in a stock filing on Tuesday.
NHPC shares closed .28 per cent higher at ₹39.08 on BSE on Tuesday. The stocks marked some improvement during intraday trading yesterday.
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The estimated maturity date of the corporate bonds to be issued by NHPC was not mentioned in the stock filing. Notably, corporate bonds owners are don't own ownership in the company and receives their invested money after a certain time with interest fixed by the company.
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The company had announced on March 23, to hold a meeting of Board of Directors of the company to consider the proposal to raise debt upto ₹5,600 crore during next financial year with the issuance of corporate bonds. Soon after the announcement, the company stocks fell from ₹40 per share to ₹39 per share.
Ahead of he corporate bonds announcement, company shares were rallying as the won a survey licence of the 450MW Sati River-6 (SR-6) Hydroelectric Project to the Government of India enterprise from Investment Board Nepal(IBN) on March 17. After the announcement the company shares surged by 5.65 per cent.
