Nuclear Power Corp raises Rs 4,600 cr at 7.14% through 15 year bonds

IIFCL is planning to mop up Rs 3,000 crore in two tranches with varying maturities

Nuclear Power Corporation of India (NPCIL) on Monday raised Rs 4,600 crore through 15–year bonds at a coupon rate of 7.14 per cent, sources said.

 

Market participants were expecting pricing in the range of 7.10–7.15 per cent for the bond issuance, and the final coupon was range bound, sources added.

 

The issue received bids worth Rs 13,000 crore, reflecting robust demand from investors, sources added.

 

The issue – rated ‘AAA’ by domestic rating agency India Ratings and CARE – had a base issue size of Rs 2,000 crore and a green shoe option of Rs 2,600 crore.

 

While the tenor of the bonds is 15 years, they have a put and call option at 10 years.

 

NPCIL is a public sector enterprise under the administrative control of the Department of Atomic Energy, Government of India. NPCIL is responsible for design, construction, commissioning and operation of nuclear power reactors.

 

Long tenor bonds have been received well recently, with state-owned issuers getting robust demand from investors.

 

Last week, state-owned Power Finance Corporation (PFC) raised Rs 6,252 crore through the issuance of bonds with different maturities. The company raised Rs 3,200 crore via 15-year bonds at a coupon of 7.11 per cent and Rs 3,052 crore via 10-year bonds at a coupon of 7.10 per cent.

 

Additionally, IRFC, the dedicated financing arm of Indian Railways, raised Rs 2,345 crore through 10-year bonds at a coupon rate of 7.09 per cent.

 

“The successful closure of NPCIL’s Rs 4,600 crore bond issue at a competitive 7.14 per cent yield underscores the strong investor confidence in AAA-rated government-backed issuers. This is despite the oversupply of AAA-rated bonds from entities like PFC, IRFC, and Nabard. The robust demand, with bids exceeding Rs 13,000 crore, highlights the market’s appetite for long-tenor instruments, especially from issuers of NPCIL’s caliber, which rarely taps the bond market,” said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP.

 

Separately, India Infrastructure Finance Company (IIFCL) is eyeing to raise Rs 3,000 crore in two tranches with varying maturities, sources said. In the first tranche, it is looking to raise Rs 2,000 crore (base issue of Rs 500 crore and green shoe option of Rs 1,500 crore) through 10-year bonds. Additionally, it plans to raise Rs 1,000 crore (base issue of Rs 250 crore and green shoe option of Rs 750 crore) through bonds maturing in 3 years and 3 months.

 

The issuance has been rated ‘AAA’ by domestic rating agencies CARE and India Ratings.

 

IIFCL is a wholly-owned Government of India company set up in 2006. It provides long-term financial assistance to viable infrastructure projects.   

Fine Print 

 

- Issue's base size was at Rs 2,000 crore and green shoe option of Rs 2,600 crore

- State-owned entities like PFC and IRFC also saw strong demand for long-tenure bonds

- PFC raised Rs 6,252 crore in bonds with maturities of 10 to 15 years 

- IIFCL plans to raise Rs 3,000 crore in two tranches with different maturities