NTPC may raise US$500mn dollar-denominated bonds in January

The state-run power producer has approached the Reserve Bank of India (RBI) to seek some clarifications on the new External Commercial Borrowing (ECB) guidelines, adds the business daily.

NTPC is looking to raise money via dollar-denominated bonds in January, and it could mobilise US$500 mn through the bond issue, reports a financial newspaper.

The state-run power producer has approached the Reserve Bank of India (RBI) to seek some clarifications on the new External Commercial Borrowing (ECB) guidelines, adds the business daily.

NTPC is seeking clarity on whether it will be allowed to raise funds with a tenure of less than 10 years.

Separately, NTPC priced its 10-year bonds worth Rs. 500 crore at 8.19% on Thursday, according to the newspaper. 

The yield is at least 50-70 basis points (bps) lower than what investors had sought for the Masala bond issue. 

The issue received a good response from investors and attracted bids close to Rs. 1,200 crore, reports the financial newspaper.

NTPC’s proposed masala bond issue was reportedly postponed because investors were looking for a yield that was higher than what was prevailing in the domestic market.