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NTPC invites bids from banks for 5,000 cr term loan

Shares of the company on Tuesday closed at  ₹158.50 on the BSE, lower by 0.03% from its previous close.Premium
Shares of the company on Tuesday closed at 158.50 on the BSE, lower by 0.03% from its previous close.

  • The company said that the proceeds of the loan shall be utilized towards capital expenditure for ongoing or new capacity addition including takeover of projects, renewable energy projects, coal mining business, renovation and modernization program of various projects, refinancing of loans and general corporate purposes among others

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NEW DELHI : State-run NTPC plans to raise up to 5,000 crore through term loan and has sought bids from banks and financial institutions by 31 August, 2022.

In its request for proposal (RFP), the company said that the proceeds of the loan shall be utilized towards capital expenditure for ongoing or new capacity addition including takeover of projects, renewable energy projects, coal mining business, renovation and modernization program of various projects, refinancing of loans and general corporate purposes among others.

“We hereby seek participation of banks/FIs (financial institutions) for the subject RFP (RFP of up to 5,000 crore term loan)," it said.

The company said that the minimum amount of loan offered by the financial institutions or banks should be 500 crore and in multiples of 500 crore.

The bids would be evaluated on the basis of quoted rate of interest.

“You are requested to quote the lowest rate of interest linked to MCLR or linked to any other market determined external benchmark," the RFP document said.

It added that the the term loans of NTPC are rated AAA (Stable) by rating agencies like CRISIL, ICRA, CARE and India Ratings.

In the May too, the company had sought bids for raising term-loan of up to 5,000 crore for capital expenditure for ongoing or new electricity generation capacity addition projects.

In its annual report for FY22, the company said that in its upcoming annual general meeting on 30 August, the company would seek the shareholders’ approval to raise funds up to 12,000 crore through issue of bonds or debentures on private placement basis.

In his message to the shareholders in the annual report, the NTPC chairman and managing director Gurdeep Singh said that the company is focused on strengthening its base of existing businesses while building new business models. NTPC is also planning to achieve 75 GW capacity by August 15 next year.

Shares of the company on Tuesday closed at 158.50 on the BSE, lower by 0.03% from its previous close.

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