NTPC floats Rs 2,000 cr overseas green masala bonds to finance clean projects

New Delhi: State-owned power major NTPC Thursday said it has raised Rs 2,000 crore through issuance of green masala bonds in an overseas market that will be used for financing renewable energy projects. “Issue of rupee-denominated Rs 20,000 million 7.375 percent notes due 2021 payable in US dollars was launched pursuant to $4 billion medium term note programme,” NTPC informed BSE in a statement Thursday. [caption id=“attachment_2791746” align=“alignleft” width=“380”]  AFP[/caption] Power Minister Piyush Goyal tweeted, “Congrats to NTPC for issuing first green masala bonds at 20 bps lower than domestic AAA benchmark.” The 5-year bond has a coupon rate of 7.375 percent and yield of the 7.48 percent, which is 20 basis points lower than domestic AAA 5-year benchmark yield today. The proceeds will be used for financing renewable projects and bonds will be listed in London and Singapore, he added. According to statement, the bonds were priced yesterday and all payments for securing bonds will be settled by 10 August. The masala bonds are rupee denominated bonds where the investor takes the currency fluctuation risk while the borrowers don’t bear the risk. In dollar bonds, the borrower bears the currency fluctuation risk. NTPC has drafted its business plan of capacity addition of about 1,000 mw through renewable resources by 2017. It has already commissioned 310 mw solar projects. The ones under implementation include Anantpur in Andhra Pradesh, Bhadla in Rajasthan, Mandsar in Madhya Pradesh and 8 mw small hydro projects. NTPC has envisioned 128 gw of total power generation capacity by 2032, with 28 per cent from renewable energy sources.