NTPC Green Energy Limited has decided to raise Rs 25 billion through the private placement of unsecured non-convertible debentures (NCDs). The debentures will carry a coupon rate of 7.27 per cent per annum, and will have a tenure of 10 years. The debentures are proposed to be listed on the National Stock Exchange.
The proceeds from the issue will be used to finance the company’s capital expenditure, including refinancing and recoupment of capital expenditure already incurred. Additionally, the funds may be provided to its subsidiaries and joint ventures through inter-corporate loans for capital expenditure, along with meeting other general corporate requirements. NTPC reported that the Debenture Trust Deed will be executed within the prescribed timeline in accordance with the applicable provisions.