Financial Briefs: India and overseas

  • NTPC Green Energy to raise up to Rs 90 billion through rupee-denominated term loan

NTPC Limited’s arm, NTPC Green Ener­gy Limited (NGEL) has invited bids for a rupee-denominated term loan of up to Rs 90 billion. NGEL aims to raise fresh debt and repay outstanding liability of Rs 82 billion towards NTPC by March 31, 2023 along with applicable interest cost. NGEL will require around Rs 8 billion for additional debt liabilities and to make balance capex payments for projects that have not yet achieved full commercial operations.

  • NHPC raises Rs 9.96 billion through issu­a­n­ce of non-convertible bonds

NHPC Limited has raised Rs 9.96 billion th­rough the issuance of unsecured, re­d­ee­mable, non-convertible, non-cumulative and taxable AD series bonds on a private placement basis. The company allotted the 7.59 per cent per annum bonds on February 20, 2023 for 15 years, with a maturity date of February 20, 2038. The bonds are proposed for listing on the wh­olesale debt market segment of the Bom­bay Stock Exchange and the National Stock Exchange.

  • RBI issues second tranche of sovereign green bonds worth Rs 80 billion

The Reserve Bank of India (RBI) has is­sued the second tranche of sovereign green bonds worth Rs 80 billion on February 9, 2023. The tranche included Rs 40 billion each of five-year and 10-year notes. The 10-year bond was sold at a cut-off price of 7.2965 per cent, while the five-year bond was sold at a cut-off price of 7.2304 per cent. It is noteworthy that the first Rs 80 billion tranche of green bonds was issued on January 25, 2023. With the completion of these iss­uances, the RBI has successfully fulfilled its target of raising Rs 160 billion throu­gh green bond issuances for the current financial year.

  • IndiGrid to acquire 100 per cent shareholding in Khargone Transmission

The India Grid Trust has signed a share purchase agreement to acquire 100 per cent shareholding and economic interest, in one or more tranches, in Khargone Transmission Limited from Sterlite Po­wer Transmission Limited for a cash consideration of Rs 14.98 billion. The completion of the acquisition will be subject to receipt of unitholders’ consent, regulatory and other relevant approvals as well as completion of contractual obligations. The transmission project was aw­arded by the Ministry of Power for a 35-year period from the scheduled commercial operation date, on a build-own-operate-maintain basis. The project is located in the states of Madhya Pradesh and Maha­ra­shtra.

  • CCI approves subscription of compulsorily convertible preference shares of Hero Future Energies Global

The Competition Commission of India (CCI) has approved the subscription of compulsorily convertible preference shares of Hero Future Energies Global Limited by Ardor Holdings II Pte. Li­mited. Ardor Holdings II Pte. Limited is a special purpose vehicle, indirectly wholly owned by investment funds, ve­hicles and/or accounts advised and ma­naged by various subsidiaries of KKR & Co. Inc. (KKR & Co. and together with its subsidiaries, KKR).

  • IMC’s green bonds generate Rs 7.21 billion

The Indore Municipal Corporation’s (IMC) non-convertible green municipal bonds have been oversubscribed 5.91 times, generating a total of Rs 7.21 billi­on. The issue has a face value of Rs 1,000 each. The base issue size was Rs 1.22 billion with an option to retain oversubscription up to Rs 1.22 billion, aggregating up to Rs 2.44 billion. The institutional/qualified institutional bidder category was subscribed the most with a total collection of Rs 2.29 billion, followed by Rs 2.05 billion from the corporate category, Rs 1.76 billion from the retail category, and Rs 1.11 billion from the high net worth individuals category. The is­sue opened on February 10, 2023 and closed on February 14, 2023. The green bonds were floated by IMC for setting up solar power plants.

  • Pakistan’s NTDC proposes PKR 370 billion investment for grid expansion (Pakistan)

The National Transmission and Des­patch Company (NTDC) has proposed a PKR 370 billion investment plan for system expansion and loss reduction over the 2023-25 period. NTDC has filed a petition with the National Electric Power Regu­la­tory Authority, seeking approval for the proposed investment to meet the needs of a growing transmission network resulting from the increase in generation capacity in various parts of the country, and for new technologies to reduce losses and rehabilitate the existing system. Of the total investment, nearly 45 per cent or PKR 167 billion will be utilised for establishing a power evacuation infrastructure for new power generation plants; about PKR 158 billion (or 43 per cent) for removing system constraints through rehabilitation, upgradation and expansion of the national grid; while the remaining will be used for new special in­dustrial zones of Dhabeji, Haripur, Sw­abi, Lahore and Faisalabad under the China-Pakistan Economic Corridor (PKR 24 billion), and upgradation of protection systems and technology projects (PKR 21 billion).