NTPC makes second issue of masala bonds worth Rs 2000 cr
Published: Apr 27, 2017
By TIOLCORP News Service
NEW DELHI, APR 27, 2017: NTPC Limited (NTPC), the largest power generating company in India, priced;its second INR denominated;5 year;Masala Bonds;offering;for Rs. 2000 crores,;in the international;markets on;25th April;2017, becoming the only State Owned Enterprise to tap Masala Bonds market twice. This is;the;eighth;offering;under;the company's US$;4billion Medium Term Note;(MTN);programme since;it was set up in;2006, taking the cumulative amount raised under the programme to US;$;3.46;billion;(approx.).
Given the strong credentials of NTPC in the International Bond Market, the;issue was oversubscribed with participation of more than 40 accounts and based on the strong order book the;Notes have been successfully priced;at a coupon of 7.25% payable annually.
The 5 year Senior Unsecured Regs Masala Bonds of NTPC;have been issued at the lowest yield for any Masala bond;by an Indian issuer till date and have been priced within AAA Corporate Bonds of equivalent tenor in domestic market.
In terms of;geographical distribution,;Asia;took the bulk of the transaction at;83%, EU area at 14% and US Offshore 3%. In terms of;investor types –;Central;Bank / Sovereign Wealth Funds comprised;50%, Asset Managers/ Fund Managers 30%, Banks 14% and Private Banks 6%.
The Company intends to use the proceeds of the issue to finance its;ongoing and new power projects within India.
Axis Bank,;Barclays;Bank,;ICICI,;MU FG,;and Standard Chartered Bank were the bookrunners for;the offering.
These bonds shall be listed at;Singapore Stock Exchange and London;Stock Exchange.