NHPC raises Rs 750 cr through bonds at coupon rate of 6.80% per annum; issue oversubscribed by 3.87 times
NHPC carries the highest credit credentials and rated AAA by leading rating agencies.
New Delhi: State-owned NHPC Ltd said on Thursday it has raised Rs 750 crore through private placement of bonds at a competitive interest rate of 6.80 per cent per annum for a loan tenure of 10 years.
The company said the issue structure consists of a base size of Rs 500 crore with a greenshoe option of Rs 250 crore.
A greenshoe is a clause contained in underwriting agreement of an initial public offering (IPO) that allows underwriters to buy up to an additional 15 percent of company shares at the offering price.
NHPC said that the issue was taken overwhelmingly by the market and oversubscribed 3.87 times, that is for Rs 2,899 crore amid COVID-19 outbreak.
The coupon rate of 6.8 percent is the lowest in the current fiscal and lower by 30 basis points or 0.3 percent than the prevailing AAA-rated 10-year bonds at 7.1 percent.
NHPC carries the highest credit credentials and rated AAA by leading rating agencies. NHPC was earlier known as National Hydroelectric Power Corporation.