NTPC to issue debentures worth over Rs 10,000 crore
13 March 2015 1:04 AM GMT
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 $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. Overall, NTPC expects to extract 60-70 million tonnes of coal from its five captive mines by 2019-20. NTPC’s coal requirement for the current fiscal is 170 MT which is likely to go up to 220 MT by 2017-18. “About 10-15 per cent of our total coal requirement is met through imports,” Biswal said.
The company which has an installed capacity of 43,803 from all sources of energy is looking at expanding its footprint in the international market. NTPC is awaiting environment clearance to commence work on its proposed thermal power plant in Sri Lanka, Biswal said.
India and Sri Lanka have signed pacts for a 500 MW thermal power project to be jointly developed by NTPC and Ceylon Electricity Board. The company stock closed at Rs 159.50, up 3.54 per cent, on the BSE.
“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 $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. Overall, NTPC expects to extract 60-70 million tonnes of coal from its five captive mines by 2019-20. NTPC’s coal requirement for the current fiscal is 170 MT which is likely to go up to 220 MT by 2017-18. “About 10-15 per cent of our total coal requirement is met through imports,” Biswal said.
The company which has an installed capacity of 43,803 from all sources of energy is looking at expanding its footprint in the international market. NTPC is awaiting environment clearance to commence work on its proposed thermal power plant in Sri Lanka, Biswal said.
India and Sri Lanka have signed pacts for a 500 MW thermal power project to be jointly developed by NTPC and Ceylon Electricity Board. The company stock closed at Rs 159.50, up 3.54 per cent, on the BSE.
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