NTPC Limited has informed the Exchange about "NTPC has decided to issue unsecured non-convertible debentures of Rs.4,000 crore on 09.05.2025, through private placement at a coupon of 6.84% p.a. for a tenor of 10 years, maturing on 09.05.2035."
NTPC · price
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NTPC will issue Rs. 4,000 crore unsecured non-convertible debentures on 09.05.2025 through private placement. The debentures carry a coupon of 6.84% per annum for a 10-year tenor, maturing on 09.05.2035. This is the second tranche issued under board approval dated 29.06.2024 and shareholder approval dated 29.08.2024. Proceeds will be used for capital expenditure, refinancing of existing loans, and general corporate purposes. The debentures are proposed to be listed on BSE.
The 6.84% coupon is competitive in the current rate environment, suggesting strong investor demand. While the additional Rs. 4,000 crore debt will marginally raise interest costs, using proceeds to refinance costlier existing loans should help optimize NTPC's overall borrowing cost. No immediate equity dilution; impact on share price likely neutral.