NTPC raises $450 million from international markets

The final order book was over $1.80 billion

NTPC, Medium Term Note, Coal mining, Power plants, Asia, EMEA, Fund managers

NTPC Limited has raised $450 million through a five year bond offering in the international markets. A company statement said this has been done under its $6 billion Medium Term Note (MTN) programme.

NTPC said the company intends to use the proceeds of the issue to finance its ongoing and new power projects, coal mining projects, acquisition of power plants & renovation and modernization of power stations.

NTPC’s $6 billion MTN programme was set up in 2006 and this issuance was the tenth offering under the programme taking the cumulative amount raised under the MTN Programme to $4.30 billion.

The final order book was over $1.80 billion, an oversubscription of nearly 4 times, with orders from more than 100 accounts. The coupon was fixed at 3.75% per annum.

“In terms of geographical distribution, Asia took the bulk of the subscription at 90%, with supplemental demand of 10% from Europe, Middle East & Africa (EMEA) and offshore US accounts. Distribution by investor type was well diversified as funds managers took 69% of the subscription, followed by banks 22%, insurance/pension 8% and others 1%,” the company said.

Axis Bank, Mizuho, MUFG, SMBC Nikko and Standard Chartered Bank were the joint lead managers & bookrunners for the offering, the statement added.

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