State-run power giant NTPC Wednesday said it launched on Tuesday a medium term notes (MTN or bond) issue to raise USD 450 million (approx Rs 3,105 crore), which is a part of its USD 6 billion (approx Rs 41,400 crore) MTN programme.
The MTNs are also know as bonds in the overseas markets. The issue would close on April 3. The funds raised through this issue will be used for capital expenditure by the company.
"NTPC Ltd has launched and priced an issue of 3.75 per cent USD 450,000,000 notes due 2024 on March 26, 2019," NTPC said in a statement.
According to the statement, the notes carry a coupon (rate) of 3.75 per cent per annum payable semi-annually. The notes are expected to be settled by April 3, 2019.
The notes will mature on April 3, 2024 and all principal and interest payments will be made in US Dollars. The notes represent direct, unconditional and unsecured obligations of NTPC and will rank pari passu among themselves and all other unsecured obligations of NTPC, it said.
The notes will be listed on the Singapore Exchange Securities Trading Ltd, India International Exchange (IFSC) Ltd and NSE IFSC Ltd.
The company said the net proceeds from the issue of notes will be used to finance capital expenditure of ongoing and/or new power projects, coal mining projects, acquisition of power projects and renovation and modernisation of power stations of NTPC in accordance with the applicable guidelines of Reserve Bank of India in relation to external commercial borrowings.
Further, it said the proceeds will be used for projects in India only.
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