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NTPC to raise Rs 4,000 cr via non-convertible debentures

NTPC Limited has announced its plan to raise Rs 4,000 crore through the issuance of unsecured, non-convertible debentures (NCDs) on June 17. The funds will be mobilised via private placement, as part of the company’s ongoing capital-raising programme.

According to an official corporate disclosure, the NCDs will carry a coupon rate of 6.89 percent per annum and will have a tenor of 10 years and 1 day, with a maturity date set for June 18, 2035. This issuance marks the third tranche of debentures under the approval obtained via a board resolution dated June 29, 2024, and a shareholder resolution dated August 29, 2024.

NTPC said the proceeds from this issuance will be used for capital expenditure, refinancing of existing loans, and other general corporate purposes. The debentures are proposed to be listed on the National Stock Exchange (NSE), enhancing their liquidity and visibility among investors.

The company also confirmed that the Debenture Trust Deed will be executed in accordance with the timelines and regulations set out under the Companies Act.