NTPC to issue debentures worth Rs 10,000 cr

State-owned power producer NTPC today said it will issue to its shareholders bonus debentures worth over Rs 10,000 crore, largest such issuance by a domestic firm, to fund expansion including by acquisitions.
The company, which has borrowing plan of Rs 15,000 crore for the next financial year (2015-16), said the debentures are a part of that exercise.
"The bonus debenture issue amounting to Rs 10,306.83 crore is the biggest ever issuance of bonus debentures by an Indian company," NTPC Director (Finance) K Biswal told reporters here.
The debentures provide a fixed coupon bearing and can be monetised on stock exchanges by selling them to shareholders, as the company proposes to list them on BSE and NSE.

The debentures will be redeemed at the end of 8th, 9th and 10th year in the ratio of 20 per cent, 40 per cent and 40 per cent of the face value respectively.
Biswal said NTPC has set a borrowing target of Rs 15,000 crore in the next fiscal of which these debentures will be part of.

The company's fund raising plan also includes USD 750 million through external commercial borrowings (ECBs) in the next fiscal.
When asked whether the quantum of overseas borrowings will increase in the coming years, Biswal said: "The company generally achieves 30 per cent of its total borrowing target through overseas funds and will continue to do so for some time in the future."

Country's largest power producer has plans to acquire thermal power plants as part of the expansion plan.
"We are evaluating Patratu (Jharkhand) and Satpura (Madhya Pradesh) thermal power projects totalling 2,000 MW capacity, both are state assets and by the end of next year we are looking at acquiring these plants," Biswal said.
On diversification plans Biswal said: "We have already diversified into coal business, we can diversify further into transmission business also but will remain in the coal and power sector."
The company is also looking at setting up transmission projects.
As part of the company's backward integration, NTPC will mine coal from its captive coal blocks.

The company will soon finalise the MDO (Mine Developer cum Operator) for its Pakri Barwadih coal block in Bihar.
Three companies including Adani have submitted technical bids for the project and the price bids will be finalised shortly.
"We will shortly finalise the price bids for the project," he added.